Staff Writer
Due to poor weather conditions that have reduced the crop’s productivity, McDonald’s has discontinued using tomatoes in food preparations at the majority of its outlets in northern and eastern India, resulting in a fivefold increase in price.
The Press Trust of India said that the international fast food chain reduced tomato consumption due to a lack of high-quality products and a steep increase in price.
The delayed monsoons, heavy rainfall, and hotter-than-normal temperatures have harmed the country’s farming regions, driving up the price of the staple food in India recently.
Widespread use of tomatoes in Indian cuisine can result in widespread protests akin to those sparked by price increases for onions, which have figuratively brought down governments in the South Asian country.
According to a study done by academics at the Reserve Bank of India and released on July 6, price variations can also disrupt efforts made by the central bank to manage inflation and its disproportionate effects on economically vulnerable populations.
The study found that although tomatoes, onions, and potatoes only make up a small fraction of the basket for the country’s Consumer Price Index Combined, they had a significant impact on the unpredictability of headline inflation.
The cost of other vegetables and items may also rise, which would have a negative effect on inflation and food security.
