Retail prices of essential vegetables, especially tomato, potato and onion, have skyrocketed across India in the last two months, upsetting household budgets. According to a survey by community social media platform LocalCircles, 71 percent households say they are paying more than Rs 50/kg for Tomato, Rs 40/kg for Potato and Rs 50/kg for Onion. As per the daily rate quoted by the Ministry of Consumer Affairs on November 2, if you buy one kg Aloo (potato), Pyaz (onion) and Tamatar (tomato) each, it will cost Rs 150-235 depending on the cities.
LocalCircles conducted a survey to understand how much extra are people spending to purchase per kilogram of onions, potatoes and tomatoes. This comes as consumers show discernment over the rising price of these vegetables since the last two months.
To the first question that asked, “What best describes the per kilogram price that your household paid for buying onion, potato and tomato in the latest purchase?”, 8,273 responses were received from citizens. Notably, 71% citizens said they are paying more than Rs 50 per Kg for tomato, Rs 40 Kg for potato, and Rs 50 per Kg for onion. In comparison to a similar survey by LocalCircles published on September 11, 2020, 61% households had said they were paying more than Rs 60 per per Kg for tomato, Rs 30 per Kg for potato, and Rs 25 per kg for onion. This means that while an average retail price majority of households paid per kilogram for potatoes rose by 30% and onions rose by 100%, while the price for tomatoes fell by 15% in just one month.
The individual data on these three vegetables suggests that 42% citizens bought “tomato at Rs 60 or higher, potato at Rs 60 or higher, and onions at Rs 70 or higher.” Whereas, 29% citizens said they bought per Kg of “tomato at INR 50-59, potato at Rs 40-59, and onion at Rs 50-69”, while 11% said to have bought “tomato at Rs 30-49, potato at Rs 20-39, and onion at Rs 30-49”. Only 6% citizens said they bought “tomato at Rs 20 or lower, potato at Rs 19 or lower, and onion at INR 29 or lower” in some places.
The report further noted that 70 per cent of households said they paid 25-100 per cent higher prices this year for buying per kilogram of tomato, potato, and onion. Whereas, only 5 per cent of citizens said they “paid the same as last year”, while 1 per cent of citizens said they paid less in comparison to last year. 11 per cent voted for “can’t say.”
This comes as many households have faced a significant loss of earnings or loss of employment during the pandemic. Sectors like tourism, hospitality, and restaurants have also faced severe cutbacks.
While the price per kilogram for tomato paid by majority of the citizens marginally reduced in the last 30 days, the price per kilogram for potato rose by 30% and the price per kilogram for onion rose by 100% upsetting the household budget for essentials. The second question asked citizens, “Overall, in 2020, how much higher price has your household paid on average for tomato, potato and onion in comparison to 2019?” 7,904 citizens responded. Notably, 70% households said they paid 25-100% higher prices this year for buying per kilogram of tomato, potato, and onion. Whereas, only 5% citizens said they “paid the same as last while 1% citizens said they “paid less in comparison to last year,” and 11% voted for “can’t say”.
This is indicative of a significant squeeze given the fact that many households have faced significant loss of earnings or loss of employment during the pandemic.
Sectors like tourism, hospitality and restaurants have faced severe cutbacks as people continue to limit movement because of the fear of COVID-19. Those employed in many such sectors are dipping into savings, taking high interest loans just to make ends meet.
The survey received more than 16,000 responses from citizens across 242 districts of India. Of which, 58% were from tier 1, 23% from tier 2, and 17% respondents were from tier 3, 4 and rural districts.
It also tried to understand an average amount a household paid this year for buying these vegetables as compared to 2019.
