Tomato puree, frozen veggies in high demand as prices of fresh produce soar

As the prices of fresh produce continue to skyrocket, online grocery delivery firms such as BigBasket, Swiggy Instamart, Blinkit, and offline retailers are experiencing a surge in demand for tomato puree and frozen vegetables, according to a report by The Economic Times (ET). Due to the high demand, retailers are running out of stock and manufacturers are increasing production.

In Delhi's retail market, the price of fresh tomatoes has increased by 78 per cent in the past month, from Rs 28 per kilogram to Rs 112 per kilogram. A 200 ml container of tomato puree, which is equivalent to about 450 gm of tomatoes, costs Rs 27.

A spokesperson for Dabur was quoted as saying that demand for tomato puree brand Hommade has risen and that the manufacturer is working hard to keep up with it. Mother Dairy, a leading player in the puree and frozen vegetable segment, has seen a significant increase in demand for its products in the past two weeks. The demand for tomato puree has increased by 300 per cent, while the demand for frozen vegetables rose by 50 per cent.

To meet the rising demand for tomato puree, we have ramped up our production, a spokesperson for Mother Dairy Fruit and Vegetable was quoted as saying.

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Amit Dutta, chief executive of grocery retailer Le Marche Retail told ET that there is a surge in demand for tomato puree as well as a shortage on the supply side. There is a gap at the moment which might only widen further as stocks of puree have dried up even at business-to-business (B2B) wholesalers, he added.

Companies cannot take prior action as it is challenging to predict a shortfall in the production of perishable food items. Therefore once the current inventory exhausts, one can expect a temporary shortage in some FMCG products because companies cannot ramp up production without passing on the increased costs to consumers, Amnish Aggarwal, who heads research at financial services provider Prabhudas Lilladher told Deccan Herald.

BigBasket is sourcing tomatoes and other vegetables from Bengaluru and for the National Capital Region (NCR) daily to meet the rising demand.

Tomato prices come under pressure during the July-August and October-November periods, which are generally lean production months. Disruption of supply chains due to monsoon has led to a further spike in rates.

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