By Sakshi Singh, Contributory Author
Aug 22, 2023 / 9 MIN READ
Amidst the prevailing discourse surrounding the rising costs of tomatoes surpassing even those of fuel, the repercussions of escalating inflationary pressures are being acutely felt by both households and dining establishments. An insightful exploration into this issue reveals that the surge in vegetable prices, particularly tomatoes, has imposed a significant burden on restaurants and households alike.
Notably, estimations provided by those in the restaurant industry suggest that the expenditures related to vegetable and spice procurement encountered a substantial surge of at least 50 percent across various eateries during the month of July. This noteworthy escalation in costs can be largely attributed to the meteoric rise in vegetable prices, an outcome predominantly caused by the unpredictable monsoon patterns across various regions of the country.
The underlying factors driving the upward trajectory of vegetable prices, particularly tomatoes, can be attributed to a confluence of circumstances, with the erratic monsoon being a pivotal contributor. The erratic and insufficient rainfall in states such as Karnataka, including Bengaluru, has led to reduced agricultural yields, causing a subsequent scarcity in vegetables and spiking their prices. Meanwhile, the city of Mumbai has faced a distinct set of challenges, encompassing a shortage in production due to extreme heat conditions and delayed rainfall. Furthermore, the trend of farmers opting for alternative crops has exacerbated the scarcity of vegetables, leading to increased prices in various local markets.
In specific areas such as Rajasthan, the surge in tomato prices can also be linked to the aftermath of natural events such as the cyclonic storm Biparjoy, which brought heavy rainfall and impacted agricultural production. As a response to these changing dynamics, regions like Bangalore, Nashik, Himachal Pradesh, Maharashtra, Uttar Pradesh, and Madhya Pradesh have emerged as primary sourcing locations for a wide array of vegetables, including tomatoes.
The profound impact of these escalating vegetable prices can be best understood by examining the prevailing prices of various commodities. While tomatoes persist at an astonishing Rs 150 per kilogram, other essentials such as ginger (Rs 430/kg), green chillies (Rs 340/kg), onions (Rs 50/kg), potatoes (Rs 40/kg), and capsicum (Rs 200/kg) have also witnessed marked price hikes. This escalation in ingredient costs has in turn influenced the procurement expenses for food-related items. Similarly, critical condiments like cumin (Rs 600/kg) and red chilli powder (Rs 800/kg) have experienced substantial price elevations, further amplifying the challenges faced by the culinary industry.
Restaurants, being significantly impacted by these price fluctuations, find themselves grappling with unprecedented challenges. Ankit Gupta, the founder of a prominent multi-cuisine restaurant, underscores the pivotal role of vegetables in their overall procurement costs, which can account for as much as 20 percent. Yet, the surge in vegetable prices, doubling or even surpassing this benchmark, has led to an alarming 50 percent increase in total vegetable expenditure. To provide context, a mid-sized restaurant typically allocates Rs 1.5-2 lakh for vegetable procurements monthly; however, this expenditure skyrocketed to Rs 2.5-3 lakh in July for many establishments, thereby necessitating the absorption of elevated costs.
Illustrating the broader impact, a noteworthy restaurant in the capital city has augmented the price of its signature dish, Dal Makhani, by 33 percent, raising it from Rs 450 to Rs 595. Similarly, an Italian restaurant in Pune has witnessed a near 30 percent surge in its Agli Olio pasta prices, escalating from Rs 166 to Rs 234. Eateries with more constrained profit margins find themselves disproportionately affected, while those with more established financial footing are cautiously navigating the evolving landscape.
The fast-food industry has also been swept into this tide of change, with significant adaptations taking place. Major players like McDonald's have begun producing burgers without tomatoes and even omitting onions due to their escalating costs. Moreover, prices for popular snacks and sides such as French fries and potato wedges have experienced upward adjustments, with a nearly 10 percent increase in certain cases.
Amid these challenges, culinary experts are finding innovative ways to manage their costs without compromising on quality. For instance, Vijayawada Hotel Owners Association president P.V. Ramana highlights the indispensability of ingredients like tomatoes, onions, garlic, and ginger as the foundation of every dish. While complete avoidance is not feasible, adjusting the quantities to maintain taste while managing costs has become a necessary strategy.
Even in modest establishments like the Sri Sathya Sai mess, pragmatic measures have been implemented. To address the price surge, portions have been curtailed to ensure viability, albeit with some compromise in quality. Chefs from various restaurants echo a collective sentiment of anticipation, expressing their hope for the transient nature of these circumstances, which are driving the need for adaptations in the pricing of dishes.
Strategic adjustments are being observed in procurement practices as well. Whereas bulk purchases were once commonplace, current circumstances have necessitated a shift to acquiring half the quantities. Consequently, certain vegetarian items have witnessed price increases, while non-vegetarian offerings remain unchanged, showcasing a tailored response to the evolving landscape.
JK Mohanty, an esteemed hotelier and chairman of the Hotels and Restaurants Association of Odisha (HRAO), acknowledges the adverse impact of escalating vegetable prices on profitability. Despite this, the industry has opted to wait for prices to stabilize before implementing comprehensive revisions in food pricing.
The narrative of skyrocketing tomato prices serves as a poignant representation of the broader challenges faced by both restaurants and households due to inflationary pressures. This intricate interplay of meteorological events, agricultural practices, and consumer behavior underscores the need for adaptive strategies within the culinary sector. As the industry navigates these turbulent times, a delicate balance between quality and affordability remains at the forefront of efforts to ensure a sustainable dining experience for patrons across the nation.
Amidst the prevailing discourse surrounding the rising costs of tomatoes surpassing even those of fuel, the repercussions of escalating inflationary pressures are being acutely felt by both households and dining establishments. An insightful exploration into this issue reveals that the surge in vegetable prices, particularly tomatoes, has imposed a significant burden on restaurants and households alike.
Notably, estimations provided by those in the restaurant industry suggest that the expenditures related to vegetable and spice procurement encountered a substantial surge of at least 50 percent across various eateries during the month of July. This noteworthy escalation in costs can be largely attributed to the meteoric rise in vegetable prices, an outcome predominantly caused by the unpredictable monsoon patterns across various regions of the country.
As urban India continues its rapid expansion, Tier 2 cities like Raipur, Indore, Bhopal, Surat, and Jabalpur are emerging as critical growth markets, particularly for national and global F&B…
Generally, if we ask any chef on why did they chose to enter the food business or what inspired them to be a chef, the answer would always be they loved food and loved spending time cooking in the…
Indian consumers have become increasingly value-conscious, and this shift has led to a growing expectation for discounts and deals, particularly in the food and beverage sector. This trend is rooted…