Tomato at Rs 100/kgWhat's driving the price hike?

By India Today Business DeskTomato prices have crossed Rs 100 per kilogram in many parts of the country over the past few days, fuelling concerns among millions of households.

Prices in local markets have surged to anywhere between Rs 80 and Rs 120 per kilo, following an increase in prices in the wholesale markets, reported The Economic Times.

Farmers have blamed the recent price hike on production shortages, triggered by the extreme heat and delayed arrival of the monsoon.

Lower production, triggered by a crash in tomato prices, is another reason that farmers cited.

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Fresh inflation trigger

The sudden rise in tomato prices could be a fresh inflation trigger for the Reserve Bank of India (RBI), following a sharp decline over the past few months.

However, RBI Governor Shaktikanta Das in recent statements had already highlighted that concerns over inflation still persist due to the El Nino forecast.

Also Read | Retail inflation dips to over 2-year low, but here’s the fine print

The ET report noted that tomato prices have doubled in the past couple of days in Delhi, as supply from neighbouring states like Uttar Pradesh and Haryana has reduced.

While it remains to be seen if tomato prices remain high or if fresh harvests will make the situation better, the current price hike is a major concern for consumers and could have a significant impact on inflation.