With prices of tomatoes hovering around Rs 100-120/kg, customers, restaurants and online grocery stories are seeing red.
Tomatoes are now conspicuously missing from salad plates and burgers at restaurants. For instance, in veg salads, several restaurants in the city have now stopped serving tomatoes and are instead giving more cucumber slices and onion dices. On Tuesday, 15 kg of tomatoes was sold at Rs 2,200 at the APMC Yard in Kolar, indicating a further spike in retail rates.
Things are so dire that instances of tomatoes being stolen have been reported. On July 8, a truck carrying 2.5 tonnes of tomatoes was hijacked in Chikkajala in Bengaluru. On July 4, Rs 2.7 lakh-worth tomatoes were stolen from farmland in Belur in Hassan district of Karnataka.
While restaurants are switching to alternatives like packaged tomato puree and ketchup, home-makers are either skipping the expensive vegetable altogether or using rationed amounts.
Some large eateries have also quietly removed tomato-based items from their menus. Retail vendors said they are facing a short supply from the wholesale market at Kalasipalya as well as from farmers especially in Kolar.
“A lot of restaurants have now switched to tomato purée and paste for tomato-based food items. Earlier we would use it for 10 percent of the food items, now 50-60 percent food items are prepared using tomato paste, purée or ketchup. Some have even discontinued tomato rice, Tomato omelettes and the like because it’s not feasible to continue selling at the same price,” said PC Rao, president, Bruhath Bangalore Hotel Association.
A slew of restaurants, especially the smaller chains, in Bengaluru are now looking to revise their menu cards.
“Tomato price increases are more short-term. Other items like rice and milk are also going to get costlier, indirect costs like electricity tariffs have also shot up along with tomato prices — the Karnataka government is likely to announce an increase in milk prices as well, so we have no option but to increase our prices accordingly,” Rao added.
Darshinis hit
Darshinis (small eateries) are bleeding because most of their popular food items — sambar, rasam, tomato rice, tomato chutney — all heavily rely on tomatoes. Vegetarian restaurants are hit the most because tomatoes are used in almost all the gravies and there’s hardly any choice right now,” said Amit Roy, managing committee member, NRAI (National Restaurant Association of India).
According to him, it is not very convenient for smaller restaurants to immediately hike prices because their billing machines must be reworked and menu cards be changed which involves unnecessary costs.
“I’ve also put out an email to my staff asking them to bring down wastage to a minimum,” he added. Some restaurants are also advising staff to bring down the usage of fresh tomatoes to a minimum which is in turn affecting flavour.
Drop in demand for tomatoes
Meanwhile quick-commerce companies, which operate dark stores, have seen a drop in demand for tomatoes and have thereby reduced their procurement capacity over the past few weeks, a top executive at a large quick-commerce company told Moneycontrol.
He was however certain that the drop was temporary and would reach the regular scale once prices cool down, “but not making tomatoes available on the platform currently is not an option,” the executive added.
Push cart owners in Bengaluru are selling a kilogram of tomatoes for about Rs 95-105, while quick-commerce companies were a tad higher at Rs 120-125 for the same quantity.
“Local tomatoes account for a very small share of our overall ingredients/inventory since we use them only for ketchup and a particular salad, so we’re comfortable at these price points for another month. We anyway think prices will cool down after that, it’s happened in the past with potatoes as well which was eventually sorted out so we’re not too worried,” said AB Gupta, co-founder of The Pizza Bakery, a boutique pizzeria based in the city.
“But in the interim, if prices go even higher, we’re just going to delist the salad and tomato ketchup from our menu. It doesn’t make sense to hike prices temporarily.” he added.
Meanwhile some have chosen to manage inventory better, instead of hiking prices immediately.
“Around 30-35 days back, we would purchase 25 kilograms of tomatoes a day and now we’re buying around 15-18 kilograms to avoid wastage and better ration the consumption of tomatoes,” said Sudarshan Kamat, who operates a restaurant in Bengaluru’s CBD area.
The eatery wants to avoid using tomato purée and other alternatives because they are processed items which alter the taste. So, for now, the owners are absorbing the price rise but if prices don't cool down in another two weeks, they will be forced to hike menu card prices.
"We stopped serving tomatoes in complimentary salads. Earlier, we used to purchase a kilogram of tomato for around Rs 37-40, now it’s around Rs 90-92. Once tomato stock is out, we stop taking more orders. Earlier we would immediately source more tomatoes and fulfill orders," Kamat added.
A retail vendor in East Bengaluru said that he is currently selling tomatoes at Rs 120 per kg, but a few weeks ago, the price had climbed as high as Rs 140 per kg. "I purchase tomatoes from the Kalasipalya market at Rs 110 per kg now. Earlier, I used to buy two to three boxes of tomatoes, with each box containing 20 kg. However, due to the skyrocketing prices, I now buy only one box. I cannot afford to buy more. Tomatoes will go bad after two-three days so the wastage is also more if customers don't buy," the vendor said.
Wholesale tomato dealers in Bengaluru's wholesale markets have expressed similar concerns. Ayub A, a wholesale trader at Kalasipalaya, said earlier around 100 trucks of tomatoes used to arrive in the city, but now the number has significantly reduced to only 15 trucks. "Tomatoes mainly come to Bengaluru from areas like Kolar, Chintamani, and other nearby places. The prices are not likely to reduce unless there is an adequate supply of tomatoes."
To cope with the high tomato prices, some homemakers have started using substitutes in various recipes. These alternatives include tomato puree/paste packs, lemon, tamarind, mango powder, beetroot, red bell pepper, onion, and red pumpkin, among others.
Lakshmi S, a homemaker in Koramangala, said a few months ago, she used to buy tomatoes at Rs 20-Rs 30 per kg. "Now, the prices have exceeded Rs 100 per kg so I decided to avoid tomatoes for the time being until prices stabilize," she adds.
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