The rising prices of vegetables are expected to cause a significant increase in grocery bills in July compared to June, with estimates suggesting an increase of at least 30%. As a result, customers are opting to buy smaller quantities of frozen mixed vegetable packets and pulses like red kidney beans and chickpeas until the prices of fresh greens stabilize.
Preeti Mishra, a resident of Baner, noted that it’s not just tomatoes, but also vegetables like cauliflower, coriander, ginger, french beans, and green chilies that have seen a significant price increase compared to last month. She mentioned that her weekly grocery expenditure for her family of four has risen from Rs 1,000 to Rs 1,200 to Rs 1,300.
Supermarkets and local grocery stores are experiencing a faster depletion of frozen vegetable supplies compared to previous times. A supermarket owner in Pashan mentioned that they typically receive supplies of frozen food and vegetables on Sundays, which usually last for a week. However, in the last two weeks, their stock has been running out within three days.
The increase in vegetable prices is a common occurrence between June 15 and August 15 due to new crop sowing and stock movement. Industry experts attribute the price hikes, including tomatoes, to heavy rainfall in hilly areas and disruptions in the supply chain. Rajnikant Rai, divisional chief executive of agri-business at ITC, suggests that if fresh vegetables become expensive, there may be a surge in demand for frozen alternatives. He also mentions that frozen vegetables are generally 40 to 50% more expensive than fresh ones. However, due to the recent price spikes, it is difficult to estimate future demand.
Girish Ghatage, founder of Gary’s Frozen Foods, a supplier in Pune, observes a general increase in demand for frozen vegetables due to reasons such as hygiene and consistency, as well as the recent rise in vegetable prices. He highlights that green peas, frozen mixed vegetables, and even frozen parathas are performing well in terms of sales.
In response to the higher prices of fresh vegetables, residents like Pallavi Kulkarni from Aundh have started buying 500g packets of mixed frozen vegetables. These smaller quantities can be mixed with potatoes for daily consumption.
Zepto, an online grocery retailer, reports a 15% growth in its frozen vegetables category, which includes products like frozen peas, sweet corn, and mixed vegetables, compared to the first week of June. They have also seen a 120% increase in tomato puree sales and a 10% increase in tomato ketchup sales during the same period. Similarly, Dunzo, another online grocery platform, is witnessing a surge in orders for tomato purees and frozen vegetables. However, interestingly, their sales of fresh tomatoes have remained steady, at least for now.
According to CRISIL’s monthly indicator of food plate cost for June 2023, the cost of vegetarian and non-vegetarian thalis has been declining since October 2022 but increased on a sequential basis in May 2023. The average cost of a thali is calculated based on input prices prevailing in different regions of India.
While the prices of pulses have also slightly increased, local shops are seeing a 20 to 30% rise in demand for red kidney beans, white chana, chickpeas, and other pulses. A store owner on Sus Road confirms the growth in demand for pulses in the last 15 days.
Zepto reports a growth of over 20% in July compared to the first week of June in the pulses category. Alongside rajma and kabuli chana, pulses such as chana dal, brown chana, and soya chunks have also experienced increased sales.
