In the second half of the current year, the price of tomato paste experienced a significant upward trend in the Indian market. This increase was driven by several key factors, with the rising prices of raw tomatoes being the primary contributor. The surge in tomato prices in India was largely due to lower supply in the market. Heavy rainfall during the monsoon season damaged tomato crops and posed considerable challenges in transporting this perishable commodity.
The high moisture conditions led to the spoilage of tomatoes before they reached the processing units. Since tomato paste is made by crushing and blanching raw tomatoes, the rising cost of the feedstock drove up manufacturing costs, which were then passed on to consumers in the form of higher prices. Additionally, increasing fuel costs and unpredictable transportation issues further added to the pressures.
On the demand side, a shift in consumer preferences toward processed food has been fueling the tomato paste market in emerging economies. Urbanization and busy lifestyles have led people to seek faster alternatives, with an increasing preference for healthier options, such as organic tomato pastes. As a result, strong demand has supported the market during this period.