McDonald’s Stops Using Tomatoes In India Due to Price Rise

Skyrocketing tomato prices in India force McDonald's to remove tomatoes from their menu, while the government blames seasonal production issues caused by heavy rainfall.

You all must have noticed that the prices of tomatoes have skyrocketed. In some regions, wholesale prices of tomatoes have surged 288% in a month to a high of  Rs 140 a kg with retail prices reaching Rs 200 per kg. With this many households have cut back on consumption. Restaurants of fast food chain McDonald’s have dropped tomatoes from their burgers and wraps in Northern and Eastern parts of the country. Notices posted in two McDonald’s stores in New Delhi read, “Despite our best efforts, we are not able to get adequate quantities of tomatoes which pass our stringent quality checks.” “We are forced to serve you products without tomatoes.” Store managers said the problem was due to quality issues in the supply chain, rather than pricing. However Mc Donald’s in western and southern regions said there were no serious tomato-related issues. McDonald’s Delhi stores still offer sachets of tomato ketchup, however, and a nearby Subway restaurant said there were no issues serving tomatoes. The rising cost of tomatoes is a major challenge for restaurants in India, as tomatoes are a staple ingredient in many dishes.  The price hike is likely to put further pressure on restaurant margins, and could lead to higher prices for consumers. The most recent price rise has prompted jokes about tomatoes costing more than petrol along with memes and music videos on social media. The opposition Congress party has blamed Prime Minister Narendra Modi’s government’s “flawed” economic policies for the price rise while its members have organized street protests by wearing necklaces made of tomatoes, comparing them to jewelry. The government, however, has insisted that the price rise is simply a seasonal production issue as there is lesser production during this time when monsoon rains disrupt transport and distribution and it expects prices to normalize soon.  It is also being reported that the price rise is due to heavy rainfall in several places which damaged the crop because of which there is a dearth of tomatoes and that is the reason for price rise.

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