Students, researchers, start-ups and the food industry: everyone was urged to participate in the national Indian ‘Tomato Grand Challenge Hackathon’ at the end of June, in order to come up with the best idea to reduce the price of tomatoes.
So far it was of no avail. A kilo of tomatoes cost 45 rupees (0.50 euros) at the time of the announcement. A week later, customers at McDonald’s in the Indian capital New Delhi suddenly stopped getting tomatoes on their burgers. The price per kilo had risen to more than 80 rupees – only to rise to 120 rupees a little less than two weeks later.
Because the rainy season started earlier in the north of the country, heavy monsoon rains have destroyed crops and caused major food shortages. Elsewhere in the country with 1.4 billion inhabitants, persistent drought is causing crop failures and rapidly rising food prices.
The consequences are particularly serious for the many Indians who live outside the cities and who have probably never heard of a McChicken or a hackathon. In Indian cuisine, the tomato is almost indispensable. It is a basic ingredient in many curries, dahls and stewed vegetables dishes eaten by the whole population – rich and poor.
The violent price rises are causing remarkable scenes. Reports of tomato theft are surfacing in Indian media, ranging from batches of 150 kilos to a complete truck with a load of 2.5 tons. A local greengrocer in the northern Indian city of Varanasi put two security guards next to the suddenly very expensive tomatoes at his market stall as a playful protest. In a video posted on social media, he accused the Indian government of not doing enough about price increases, which have turned tomatoes into luxury goods.
Export ban
Indian Prime Minister Narendra Modi will not be able to laugh at the video. Social unrest over food prices spells disaster for Modi as elections approach next spring. In 1980, popular anger over onion prices turned the election result against the incumbent party, and in 1998 Modi’s BJP lost regional elections in the capital Delhi when the price of onions plummeted to virtually zero.
Moreover, it is not only tomato prices that are rising sharply in India. Wheat, legumes and potatoes also became significantly more expensive. The domestic price of a kilo of rice is also currently almost 8 percent higher than at the beginning of this year, which has led to protests. Rice is hoarded and there are reports of empty supermarket shelves.
To halt the domestic price explosion, Modi in July imposed an export ban on all white rice varieties, except for basmati rice. The export ban comes on top of measures already in force for broken rice. In total, about 40 percent of Indian rice exports are now at a standstill.
India is the world’s largest rice exporter, and billions of people around the world could be affected, said IMF chief economist Pierre-Olivier Gourinchas. Gourinchas compared the Indian export restrictions to the collapse of the grain deal between Russia and Ukraine. Rice could become 10 to 15 percent more expensive on the world market, according to the chief economist – who called for the decision to be reversed.
To date, Modi does not seem to intend to do anything about the export ban. The tomato trader who put guards in front of his stall also knows that his protest was not appreciated. The day after the video was released, he and his son were arrested for inciting hatred, hostility and anger among the population.
A version of this article also appeared in the August 4, 2023 newspaper.
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