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India: High fresh tomato prices push demand for processed

Zoom in font  Zoom out font Published: 2015-11-24  Views: 0
Core Tip: The steep rise in tomato prices in India have made people turn to 'quick-fix solutions' like puree and ketchup to keep the kitchen budget intact, says a survey.
The steep rise in tomato prices in India have made people turn to 'quick-fix solutions' like puree and ketchup to keep the kitchen budget intact, says a survey.

According to the Assocham survey, about 72 per cent of middle income group (MIG) and lower income group (LIG) find it difficult to manage their household budget and squeezing families' finances to the lowest level due to sudden rise in price of vegetables like tomatoes, onion and ginger.

The survey was conducted among 1,000 housewives in major cities like Delhi-NCR, Mumbai, Kolkata, Chennai, Ahmedabad and Hyderabad. The maximum impact was felt in Delhi-NCR followed Mumbai and Ahmedabad.

Around 72 per cent of lower middle class families have been forced to skip using tomatoes or squeeze their budget for vegetables to keep it intact.

"The demand for tomato puree and ketchup, ginger-garlic pastes have gone up by 20-25 per cent due to high fluctuations of market prices of vegetables", Assocham Secretary General D S Rawat said.

Tomato prices have increased to Rs 65 per kg in Delhi from Rs 40 per kg a month ago. The average prices of tomatoes across major cities have risen to Rs 55/kg from Rs 30 a month ago. Similarly, onion prices have increased to Rs 37.52 per kg from Rs 36 a week ago.

Prices of tomatoes, onions besides fruits have gone up by 50-55 per cent. Fruits have also become a luxury for the lower middle class; one spends less on buying puree/ ketchup than a kilo of fresh tomatoes. Packed food products appeared to be a better option for middle or lower income group, the survey said.
 
 
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