As tomato prices continue to soar, BigBasket, a leading online grocery delivery firm, has come up with a helpful suggestion to cope with the high costs. On its mobile application, the company urges customers to consider using Tomato Puree as an alternative to fresh tomatoes. Made from 100% ripe tomatoes, the puree offers a convenient and economical option for cooking.
This surge in tomato prices has not only impacted BigBasket but also other online grocery delivery companies like Zepto and Blinkit, as well as numerous offline retailers. Consumers are increasingly turning to tomato puree and frozen vegetables as the prices of fresh produce reach unprecedented levels. The heightened demand is causing stock shortages, prompting manufacturers to ramp up their production to meet the needs of the market.
Fresh tomato prices in Delhi’s retail market have skyrocketed from Rs. 28 per kg a month ago to a staggering Rs. 112 per kg. To put it into perspective, a 200-ml container of tomato puree, which is equivalent to approximately 450 gm of tomatoes, costs Rs. 27.
Dabur’s spokesperson revealed that the demand for their tomato puree brand, Hommade, has surged significantly, and they are working diligently to keep up with it. Mother Dairy, a major player in the puree and frozen vegetable segments, has witnessed a staggering 300% increase in demand for tomato puree and a 50% increase for frozen vegetables in its stores over the past two weeks. To address this surge in demand, they have ramped up production to meet the market’s needs.
Zepto, a quick-commerce company, reported a remarkable 120% rise in tomato puree sales compared to the first week of June. The sales of tomato ketchup have also seen a boost of 10% during the same period.
The situation has been exacerbated by excessive rain and floods in states like Himachal Pradesh, leading to the destruction of harvest-ready vegetables. This supply gap, coupled with the surging demand for tomato puree, has created an urgent challenge for retailers and wholesalers.
BigBasket has taken measures to address the supply gap by sourcing tomatoes and other vegetables from Bengaluru and Nashik to cater to the National Capital Region (NCR) on a daily basis. In an effort to ease customer discomfort, they have been selling tomatoes at nearly cost-effective prices.
The central government is also taking action to mitigate the impact of rising tomato prices. Procurement agencies, such as the National Agricultural Cooperative Marketing Federation (NAFED) and the National Cooperative Consumers Federation (NCCF), have been directed to source tomatoes from Andhra Pradesh, Karnataka, and Maharashtra and distribute them in major consumption centers like the NCR.
As tomato prices remain a critical concern, the industry is grappling with challenges while striving to meet the growing demand for tomato puree and frozen vegetables amidst these unprecedented circumstances.