New Delhi: The price of tomatoes has surged to nearly Rs 80 per kg in various retail markets, including the capital, due to heavy rains impacting supplies from Himachal Pradesh and crop infestations in Karnataka and Andhra Pradesh.
Over the past month, the retail price of tomatoes has almost doubled. According to the Price Monitoring Division of the Department of Consumer Affairs, the average retail price of tomatoes hit Rs 58.2 per kg on July 5, marking a 64.45% increase from the previous month. Meanwhile, wholesale prices for tomatoes have risen by 73.24% in the same period.
Other essential vegetables have also seen significant price hikes. Onions have increased by 32.19%, from Rs 32.53 per kg on June 5 to Rs 43 per kg on July 5, and potatoes have seen a 17.09% rise. In wholesale markets, onion prices have climbed by 36.14% over the past month.
These price increases have led to a 10% rise in the cost of preparing food at home in June, according to data from rating agency CRISIL. The average cost of a vegetarian meal prepared at home rose to Rs 29.4 in June, up from Rs 26.7 in the same month last year. In May 2024, the cost stood at Rs 27.8.
CRISIL attributes the June price spike to the increased prices of tomatoes, onions, and potatoes due to lower supplies caused by adverse weather conditions. The price of tomatoes rose by 30% year-on-year in June, while onion and potato prices increased by 46% and 59%, respectively.
High temperatures in Karnataka and Andhra Pradesh have led to a virus infestation in tomato crops, resulting in a 35% year-on-year decline in production. Unseasonal rainfall in March reduced potato yields, and a significant drop in rabi acreage impacted onion production.
“The cost of home-cooked vegetarian meals has been rising since November 2023 due to the increasing prices of vegetables. Tomatoes, onions, and potatoes have been the main drivers of this rise as adverse weather conditions have disrupted their supply,” said Pushan Sharma, Director of Research at CRISIL Market Intelligence and Analytics.
Last year, tomato prices soared to over Rs 350 per kg during the monsoon season but eased after September. Analysts expect a similar trend this year, with prices likely to stabilize at the end of August as fresh supplies come in from southern and western states.
A decrease in acreage has also led to a 13% year-on-year increase in rice prices during June. A dry spell in key kharif months has impacted pulse production, resulting in a 22% price increase.
The Department of Consumer Affairs reported that the average retail price of arhar dal rose to Rs 163.59 on July 5, a 2.88% increase from the previous month. Prices of gram dal, wheat, and rice have also increased. High food prices are expected to keep overall retail inflation elevated in the coming months.