Surging tomato prices give boost to the demand for tomato puree and ketchup

An increase in the price of tomatoes has adversely effected the budgets of families across cities. According to a recent study conducted by ASSOCHAM, about 78% of households find difficult to manage their household budget and curbing families’ finances to the lowest level due to impulsive rise in price of tomatoes.

According to the study, demand for tomato puree and ketchup has increased by 40 per cent in one month as people have reduced the use of tomato and prefer dishes which do not require much use of tomatoes.

As per the recent estimate of the government, the country’s tomato yield is pegged at 18.28 million tonnes in the 2015-16 crop year (July-June) as against 16.38 million tonnes last year. Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, West Bengal and Odisha are among the major tomato growing states.

It has also been observed that local grocers across the country have increased stock of tomato puree/ketchup. In the last two weeks there has been an increase in sales of products such as puree, ketchup as it is economic to buy puree/ ketchup from the local grocers than a kilo of fresh tomatoes from the vegetable, further reveals the study.

The prices have gone up because of tight supply from the major growing states of the south where the rabi crop has been damaged during the flowering stage because of the severe drought, adds the paper.

About 56% of the respondents shared that they have abridged the use of tomatoes and prefer dishes which do not require much use of tomatoes and some are substituting it with raw mango, tamarind or lemon juices to get that sour taste.

In the last one month, the rates have gone through the roof and the key vegetable is being sold at Rs 80-100 per kg by local vegetable vendors depending upon the quality and locality, adds the paper.

The survey was conducted in major cities such as Delhi-NCR, Mumbai, Kolkata, Chennai, Ahmedabad and Hyderabad; over 1500 housewives took part in the study. The maximum impact was felt in the National Capital Region followed Mumbai, Ahmedabad.

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