Rise in tomato prices lead to high demand for puree/ketchup: ASSOCHAM

Rise in tomato prices due to crop damage following rains in the growing areas has lead to high demand for puree/ketchup to the extent of 40-45% in the recent few weeks, according to a paper by industry body ASSOCHAM.

An interaction with the Mandi traders in different major cities like Delhi-NCR, Mumbai, Lucknow, Kolkata, Chennai, Ahmedabad, Hyderabad indicates that the tomato prices may not immediately ease as flooding in some of the growing states have led to damage to the crop.

Unlike onion and potato, the shelf life for tomato is very short and it needs cold chains and modern warehouses for storage and transportation, ASSOCHAM states in the paper.

On the back of rising demand, the grocers have increased stock of tomato puree/ketchup, as the home makers are quite sensitive to any price rise. The majority of respondents said that they have curtailed the use of tomatoes and prefer dishes which do not require much use of tomatoes, like lady finger or pumpkin and some are substituting it with raw mango to get that sour taste, adds the paper.

"Frequent volatility in prices of fruits and vegetables underscores the need for creation of a well-equipped supply chain in this segment. Both the states and the Centre should extend liberal sops for investment in cold chains and refrigerated infrastructure," ASSOCHAM secretary general DS Rawat said.