Tomato prices are out of control! Live action versions of "stealing vegetables" are being staged in various parts of India | India | Tomatoes

"Nowadays, tomatoes have been sold for 200 Indian rupees per kilogram, which is really an astronomical number," Sanjay, a resident of Mumbai, the economic center of India, told First Financial reporters.

He said that in the past, the price of tomatoes in India was only around 30 rupees per kilogram, and in just two months, it has increased nearly six times. He also observed that the common people were filled with complaints about the price of tomatoes, and in vegetable markets, small vendors were not happy because prices were rising and sales plummeted. Many small vendors even closed their doors and declined customers.

Caring about tomato prices in India is not a big deal. Tomatoes and onions are the main vegetables on the dining table of Indian people, and a sharp surge in vegetable prices can lead to an increase in their dissatisfaction, which in turn affects the decision-making of the government's financial sector and even has an impact on the political situation.

Taking onions as an example, there have been many cases in Indian history where political parties lost elections and officials stepped down due to the "onion crisis", so it is also known as a "political vegetable" in India.

Out of control tomato prices

Sanjay told First Financial reporters that due to the influence of monsoon climate and transportation conditions, tomato prices have actually increased from June to July every year, but the magnitude is limited and the public is not so concerned. However, this year's price increase method is a bit confusing for him.

In mid June, the price of tomatoes per kilogram began to double from 30 rupees to 50-60 rupees. By the end of June, it had already reached 100 rupees, and within a few days of entering July, it had climbed to around 150 rupees. Sanjay thought that this price was coming to an end, but he didn't expect to visit over the weekend and see that it had already reached a high of 200 rupees.

In the southern Indian city of Chennai, far from its production areas, tomato prices have skyrocketed even higher, reaching 250 rupees per kilogram on July 20th. The Indian government has restricted the purchase of tomatoes at subsidized prices. According to data from the Indian Ministry of Consumer Affairs, Food and Public Distribution, tomato prices in India have surged 341% from early 2023 to July 11.

He told a reporter from First Financial News that he saw many people in the market just trying to ask about the price of tomatoes, but then shook their heads and left. Only a few actually made purchases, and vegetable shops couldn't sell a few pounds of tomatoes a day. Considering their high costs, many shops chose to close down.

Nowadays in India, tomatoes not only make middle and low-income people hesitant to pursue them, but also many well-known international chain brands have retreated. McDonald's, located in many parts of India, recently announced a temporary halt to adding fresh tomatoes to burgers.

A notice posted inside a McDonald's store in the Indian capital New Delhi reads: "Despite our best efforts, we are still unable to obtain enough tomatoes and the quality is not up to standard." "We are unable to provide you with products containing tomatoes.".

Compared to the frankness of catering enterprises, online shopping platforms appear more innovative. For example, Big Basket, a food shopping application belonging to Tata Group, when customers search for tomatoes, big data will pop up an advertisement to them: "Tomatoes are expensive? Cook with tomato sauce!" Due to the easy storage of tomato sauce, its price has not fluctuated significantly.

The soaring price of tomatoes has earned many tomato farmers money. A farmer named Nikam from Gujarat, India, said, "I have never seen my tomatoes sell so expensive." Now, for every kilogram sold, he can earn 130 Indian rupees.

However, the reason for the current shortage of tomato supply is that tomatoes were sold too cheaply in the past. Just a few months ago, his tomatoes could only be sold for 13 rupees per kilogram. He said, "Many farmers are forced to dispose of tomatoes or feed them to cows."

But now Indian farmers have new troubles, high prices have led to crime, and they need to guard tomato fields all night to prevent being "stolen". In just 7 days, two farmers guarding tomatoes have been killed in Anamaya County, Andhra Pradesh, India.

Meanwhile, in various parts of India, cases of tomato theft have occurred frequently. For example, a restaurant in Jaipur, Rajasthan reported that they had stolen 150 kilograms of tomatoes. So the owner of a vegetable and fruit shop hired two bodyguards to watch the store due to concerns about the tomatoes being stolen, causing onlookers. However, the Indian police believed that this was politically motivated and arrested the owner and son. Eventually, the father and son were released after they were released on bail.

In Nepal, a neighboring country of India, the price of tomatoes is half that of India, prompting many residents to cross borders and go abroad to search for tomatoes. In response to the current chaos, the Indian government does not have a good strategy. An official from Uttar Pradesh said that if people do not eat tomatoes, prices will come down. He encourages the public to use lemons instead of tomatoes when cooking, or to grow them at home.

where the trouble lies

India is the second largest tomato producing country in the world after China and should not have lacked tomatoes. The Indian National Institute for Biological Stress Management, which specializes in agricultural research, believes that flooding in major tomato producing areas in India due to heavy rainfall is a key factor driving up tomato prices.

Climate change has led to a decrease in tomato supply. "From April to June this year, the continuous heat wave caused tomatoes to fail to bloom normally, resulting in a 70% decrease in this year's yield," said Gardewi, President of the Indian Vegetable Growers Association. He also stated that during the tomato harvest process, a large number of fruits were affected by pests and could only be discarded, further exacerbating the current supply shortage.

April to June in India is the dry season, usually hot. The subsequent monsoon will cause heavy rain throughout the country, which has a cooling effect. Over the past decade, the dry season in India has become increasingly hot. According to a survey by the international research organization "World Weather Attribution Alliance", climate change has increased the probability of South Asia experiencing extreme high temperatures since April this year by at least 30 times.

The high temperature has also had a significant impact on India's economy, with agriculture being the first to be affected. Due to the high temperature, the yield of crops such as rice and fruits and vegetables in India has decreased. At the same time, due to the lack of sufficient infrastructure such as cold chain in India, the overheated weather has caused a large amount of agricultural products to spoil during transportation.

A study led by researchers at the University of Cambridge, led by De Burnett, shows that high temperatures have caused an "unprecedented burden" on India's agriculture, economy, and public health. In a report published in April this year, they stated that extreme high temperatures could lead to a 15% decrease in India's "outdoor work capacity". By 2050, it will ultimately reduce the quality of life for 480 million people, resulting in a 2.8% decline in GDP.

From a historical perspective, fluctuations in tomato prices have been one of the important factors triggering inflation crises, and their price increases will affect other vegetable prices in the market. As a result, prices of vegetables such as cauliflower, potatoes, onions, cabbage, and chili peppers have risen synchronously. High food prices may lead to inflation rates exceeding the Bank of India's medium-term target.

However, the Indian government has stated that despite the recent surge in tomato prices, the annual tomato inflation rate remains negative. Indian Minister of Trade and Industry Goyal recently stated that the average price of tomatoes in India has not changed significantly compared to the same period in 2022, and stated that price increases are a "seasonal phenomenon".

For this reason, the opposition party in India hung tomatoes on their chest, calling them "jewelry" to mock the high price. Many people in Mumbai hold tomatoes, shout slogans, and protest against the rise in basic food prices.

Indian media believe that the significant fluctuations in agricultural product prices not only endanger people's dining tables and money bags, but also have a significant political impact. Previously, some ruling parties in India suffered election losses due to their failure to handle onion supply and price issues. Ensuring the supply of agricultural products not only requires timing, but also tests the government's governance capabilities.