Tomato, onion stoke fears of higher food inflation

Pune: Tomato, onion and potato prices are on the rise again, raising concerns over food inflation. Average retail tomato prices have risen 18% in the past month, onions 11% and potatoes 1.3%, according to consumer affairs ministry data. The three vegetables together account for 1.75% of the Consumer Price Index.

On a year-on-year basis, tomato prices are up 25% and onion prices 3.3%, while potato prices are 17% lower.

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Tomatoes have become up to 50% more expensive in states such as Uttar Pradesh, Bihar and Madhya Pradesh, while prices have nearly doubled in Delhi as extreme heat hurt production and disrupted supplies. Onion prices have risen 10-20% in several states after unseasonal rain affected the crop’s storage quality.

Onions and tomatoes are prone to seasonal price surges during the monsoon, depending on its arrival, spread and intensity. The severe heatwave, driven by El Nino and delayed rainfall, has affected the delicate tomato crop the most.

“Not only have supplies declined, long-distance transportation of tomatoes also became difficult as the fruits ripened quickly due to the heat,” said Ashok Kaushik, president, Azadpur Onion Traders’ Association. Tomato supplies to Delhi from Rajasthan and Haryana have declined.