McDonald's in Delhi excludes tomatoes from menu as prices surge across India

McDonald's in Delhi has announced that it will not be serving products with tomatoes due to quality issues stemming from the tomato shortage.

This incident is a result of soaring tomato prices in northern regions of India due to a combination of heatwaves, heavy rainfall, and supply chain disruptions.

The surge in vegetable prices, including tomatoes, is attributed to the prevailing heatwave in key tomato-growing areas and the impact of heavy rainfall on supply chains. The relatively short shelf life of tomatoes further contributes to the price increase.

SEBI Registered Investment Adviser, Aditya Saha, tweeted about McDonald's notice, stating that even the fast-food chain cannot afford tomatoes now. The tweet received sarcastic responses from social media users, highlighting the supply-demand gap and fixed pricing models typically employed by restaurants and quick-service chains.

In the northern regions, tomato prices have significantly risen, reaching as high as ₹250 per kilogram in Gangotri Dham and ₹180 to ₹200 per kilogram in Uttarkashi district. The sudden price hike has led to decreased consumer demand. Similar price increases have been observed in Gangotri and Yamunotri, where tomatoes are being sold at ₹200 to ₹250 per kilogram.

Vegetable sellers in Chennai report tomatoes priced at ₹100-130 per kilogram. To alleviate the burden on consumers, the Tamil Nadu government has started selling tomatoes at a subsidised rate of ₹60 per kilogram in ration shops in Chennai.

Karnataka has also witnessed a steep rise in tomato prices, with rates ranging from ₹101 to ₹121 per kilogram in Bengaluru. The price surge is attributed to pest attacks on tomato crops resulting from the sudden rise in temperatures during March and April.