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Tomato puree may soon do a vanish from store shelves

It is challenging to predict a shortfall in production of perishable food items, which is why companies cannot take prior action.
Last Updated : 12 July 2023, 00:49 IST

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In light of skyrocketing tomato prices and an overall food cost inflation, fast moving consumer goods (FMCG) companies are seeing a temporary boost in sales for select products. A representative from homegrown consumer goods major Dabur India Ltd confirmed a surge in demand for its tomato puree but refrained from sharing further details stating a silent period before an upcoming board meeting.

It is challenging to predict a shortfall in production of perishable food items, which is why companies cannot take prior action. As a result, once the current inventory exhausts, one can expect a temporary shortage in some FMCG products as companies cannot ramp up production without passing on the increased costs to consumers, Amnish Aggarwal, who heads research at financial services provider Prabhudas Lilladher explained to DH.

Dabur’s tomato puree, which was earlier priced at Rs 25 for a 200 gram pack, is currently available at Rs 27 across stores. Furthermore, the item is currently out of stock on online grocery shopping platforms such as Flipkart, blinkit and Amazon.

Consumers, hotels and restaurants, on the other hand, are adopting varied strategies to work around the increased prices of vegetables and pulses. While those who see it as a temporary phenomenon have incurred as much as a 70% surge in monthly raw ingredients expenditure, others have reduced quantities of select items in their offerings while maintaining overall portion sizes.

“If this continues, we may increase prices of items on our menu,” stressed Amol Deb, head chef at Coco’s Bar & Kitchen.

Hindustan Unilever's Kissan did not respond to DH's queries stating a "closed period".

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Published 11 July 2023, 16:01 IST

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