What is the impact of tomato price rise on Indian economy
Analyze the policies of the Indian government under Centre's rule, leading to a rise in tomato prices, and discuss the economic impact.
- Tomatoes are a staple ingredient in Indian kitchens, and the steep rise in their price is leading to an increase in food inflation, which is a burden on households' expenditure.
- The rise in tomato prices can lead to a decrease in demand for other vegetables, leading to a loss of income for farmers who cultivate them, and an imbalance in the market.
- The increase in tomato prices has a cascading effect on other sectors such as the food industry, retail sector, and transportation industry, which could dampen the entire economy's growth.
- The government policies towards import and export, production capacity building, and control of middlemen need to be more effective to ensure timely availability of tomatoes and stabilize the prices.
- The government could also incentivize alternative farming techniques like hydroponics to tackle the recurring problems related to tomato production and supply.
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a year ago