Tomato and vegetable prices: Cost may ease on supply from Andhra and Karnataka, but rains play spoilsport in Himachal

Tomato and vegetable prices: The price of tomatoes in retail markets could cool a bit in the coming weeks as vendors expect supply from Andhra Pradesh and Karnataka to help relieve demand strain, PTI reported, citing a government official.

Tomato, which is retailing at ₹75/kg in the national capital, and that of onions and potatoes may normalise in one to two weeks, once supply from the southern states begins reaching markets, the official said on July 13.

He however added that rains would be a major factor in the demand-supply game.

Potato, Onion, Tomato Prices

“Prices of tomato, potato and onion are ruling high in Delhi and some other cities. Extreme heat followed by spells of excess rainfall disrupted supplies, causing a spike in prices in consuming areas. Prices will start easing as hybrid tomatoes from Andhra Pradesh and Karnataka reach the national capital,” the official, from the consumer affairs ministry, told PTI.

The national capital gets its supply from Himachal Pradesh and Uttarakhand.

According to the ministry data, tomato is retailing at ₹75/kg in New Delhi, while in Mumbai the price is even higher at ₹83/kg and in Kolkata at ₹80/kg. The pan-India retail price is at ₹65.21/kg on average.

Potatoes are retailing for ₹40/kg in New Delhi, while onion is at ₹57/kg.

For onion prices, the official said that new crop due in September would likely help further ease prices for the vegetable the official said. Supply from Maharashtra has already helped cool prices a bit.

For potatoes, the official noted that the country has 283 lakh tonne of stored vegetable, which is sufficient to meet domestic demand. This despite a lower crop production this year compared to last year.

Rains A Major Factor

Notably, heavy rainfall has disrupted the supply of tomatoes, potatoes, onions, and green vegetables, being the major cause of price hikes across metros.

Crops including onions, potatoes, tomatoes, and green vegetables such as cabbage, cauliflower, and gourd family vegetables have seen their prices soar almost double in north Indian wholesale markets amid rain devastating in Himachal Pradesh.

"Currently, the wholesale price of tomatoes is around ₹50-60/kg --- earlier, these used to sell for around ₹25-30. The local variety is selling for ₹1,200 per crate (28 kilograms), and the hybrid variety for ₹1,400-1,700 per crate. The price for other vegetables in the wholesale market is around ₹25-28/kg. Vegetables that used to sell for ₹10-15 are now ₹25-30. Beans rates have also increased, selling for ₹40-50/kg," Sanjay Bhagat, a trader in Azadpur Sabzi Mandi in New Delhi, told PTI.

New crop from Maharashtra is set to arrive around August 10-15, as per another trader in Okhla Sabzi Mandi said.

Common Man Making Cuts in Thali

"I am only buying limited quantities and only those items which are absolutely necessary in the kitchen. A common man cannot afford to buy vegetables right now," Sarita, who was buying groceries in the Laxmi Nagar vegetable market told PTI.

Deepak, in Mehrauli vegetable market, said, "Earlier, with 200 to 300 rupees, we could buy vegetables for the entire week but now it is spent in just two to three days. It has become difficult to manage the kitchen budget."

Restaurants are also passing the burden to customers as much as possible, but this may sometimes be difficult and not a solution, the report noted.

Manpreet Singh, owner of Zen Restaurant in Connaught Place and honorary treasurer of the National Restaurant Association of India, told PTI that high veg rates have hiked the cost of dishes across restaurants.

"Most restaurants have fixed menus, and we have regular customers, so we can't fluctuate our prices like suppliers can. This puts pressure on our margins. We try not to increase our prices too often, but sometimes we are forced to do so annually due to these unexpected cost increases. This is the challenge for restaurants with printed menus, which can't be changed frequently. Those with electronic menus or tablets are rare," Singh said.

The owner of the street Kiosk shop selling meals in the Chhatarpur area of South Delhi told PTI, "We have to buy vegetables at a higher cost, but if we increase prices for dishes, customers won't come. We don't have any option other than to wait for the prices to come down."

(With inputs from PTI)