What is the impact of dip in supply of tomatoes on Indian economy
Tomato prices soar across country due to dip in supply, cost ₹80-100 per kg.
- Price hike: Due to the reduced supply, the price of tomatoes in India has shot up to around ₹80-100 per kg. This price hike has affected the common man as tomatoes are a staple ingredient in almost all Indian dishes.
- Food inflation: The spike in tomato prices has also contributed to an increase in food inflation in the country. Inflation in the food sector can have a cascading effect on other sectors of the economy, leading to an overall increase in prices.
- Farmer distress: While the tomato prices have soared, farmers in some of the key tomato-growing states have not benefited much due to the middlemen who control the prices. This has resulted in distress for farmers with a potential impact on the economy.
- Impact on exports: India is one of the largest tomato producers in the world and exports tomato pulp and paste to many countries. The dip in supply may impact the exports and revenue from this sector.
- Alternative ingredients: The increase in tomato prices has led to people substituting it with other vegetables like bottle gourd, cucumber, and brinjal. This may result in a change in food habits and consumption patterns.
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a year ago