The West and South franchise of McDonald’s India issued a statement saying, “This is a seasonal problem that the restaurant and food industry has to face every monsoon.”
The government has invited the public to a Tomato Grand Challenge Hackathon in an effort to find fresh ideas for how to enhance India’s tomato value chain and reduce prices.
Before the August harvest, tomato prices typically increase during the growing months of June and July, according to Yeo.
Production has been hampered, he claimed, due to the southwest monsoon’s delayed onset and above-average temperatures in June and July of 2023.
He claimed that the recent spread of the tomato mosaic virus had also led to a range of crop losses, from partial to total. The disease may result in a decrease in size, quality, and yield due to the mottling or mosaic appearance on the leaf.
According to government data, tomato prices have increased 166% since July of last year. Consequently, a Reuters poll indicates that due to rising food costs, India’s inflation report for June likely increased by 4.58% year over year.
According to Radhika Rao, senior economist at DBS Bank, the prices of tomatoes, onions, and potatoes are typically “highly volatile” and face a relatively inelastic demand because they are staple foods consumed by people in India.
However, the researchers predict that when harvesting starts in the next month, tomato prices may begin to stabilize.
“There are expectations that the summer crop supplies may arrive next month, helping to calm prices, ahead of the potential use of administrative measures, including higher imports,” said Rao.
Similar to this, BMI’s Yeo predicted that the tomato harvests will begin in August and that, even if they are small, the increased volume may help to lower costs.