With the surge in tomato prices McDonalds in Delhi has issued a notice stating that it would not be able to serve its products with tomatoes due to quality issues arising in obtaining tomatoes.
The surge in vegetable prices can be attributed to a combination of factors, including the prevailing heatwave in key tomato-growing areas and heavy rainfall, which has disrupted the supply chains. Additionally, tomatoes have a relatively shorter shelf life, further impacting their prices.
SEBI Registered Investment Adviser, Aditya Saha tweeted that McDonald's in Delhi had put up a notice stating that even McDonald's cannot afford tomatoes now.
To this, many social media users replied with sarcasm. One user tweeted that the supply-demand gap is causing difficulties in the situation. Restaurants and QSR chains typically do not consider price fluctuations as they operate on fixed rates for an entire year.
The issue lies with the supply side, which may affect the quality of tomatoes. The user suggested the masses accept the situation for the next 30-45 days until the price stabilises.
The prices of tomatoes have significantly risen in northern regions, with rates reaching ₹250 per kilogram in Gangotri Dham and ₹180 to ₹200 per kilogram in Uttarkashi district. Local vegetable sellers have noted the sudden increase in tomato prices, which has led to a decrease in consumer demand. Similar price hikes have been observed in Gangotri and Yamunotri, where tomatoes are being sold at ₹200 to ₹250 per kilogram.
A vegetable seller said the importance of tomatoes has increased in the region all of a sudden.
"Consumers are bearing the brunt of the rising prices of the tomatoes in Uttarkashi. People are not even willing to buy them. In Gangotri, Yamunotri, tomatoes are going at ₹200 to ₹250 per kg," Rakesh, a vegetable seller, reported ANI.
In Chennai, tomatoes are currently priced at ₹100-130 per kilogram. To alleviate the burden on consumers, the Tamil Nadu government has started selling tomatoes at a subsidised rate of ₹60 per kilogram at ration shops in the state capital, Chennai.
Karnataka has also witnessed a steep rise in tomato prices. In Bengaluru, prices range from ₹101 to ₹121 per kilogramme. The increase in prices can be attributed to the sudden rise in temperatures during March and April, which resulted in pest attacks on tomato crops and subsequently led to higher market rates.
