Tomato Prices Jump 24%: Is A Weak Monsoon The Start Of A Bigger Food Inflation Problem?

Summary

Tomato prices in India have jumped 24 percent over the past year, with the average retail price rising to 43.7 rupees per kilogram. The price increase is attributed to a combination of extreme weather, patchy monsoon rains, and disruptions in supplies from key producing states, with rainfall currently running 43 percent below normal. This surge in tomato prices has raised concerns over the potential for broader food inflation, as weather disruptions can quickly impact crop conditions and supplies.