Increase in price of vegetables pushes up packaged food demand

In the past ready-o-eat meals was purchased by bachelors and those who travel frequently. But, due to the rise in cost of vegetables more and more people  have turned over to this quick-fix solution to cut costs.

Economists still believe that home cooked would be more economical but the Assocham study maintains that the steep rise in prices of vegetables has over 58% middle and low income group families swiching over to pre-cooked food.

The study pointed out that with prices of kitchen staples such as garlic and ginger (Rs 160 to Rs 200) and tomatoes (Rs 40 to Rs 60) increasing, the demand for their ready-to-use version has shot up. And local grocers corroborated the survey's findings. Ashok L Mankar, a grocer in Vimannagar said, "Of late we have had to increase our stock of ginger-garlic paste and tomato puree." Kanahaiya Jadhav, another grocer said that in the last couple of weeks he has seen a rise in sales of products such as aloo methi, aloo palak, bhindi masala, navratna korma, gobhi matar.

Most ready-to-eat food products are priced Rs 35 and upwards and serve 2-3 adults. In fact, with the boom in the packaged food industry, many companies have launched products that target the middle income group. A walk in any well-stocked grocery store in the city throws up countless options - from readymade vegetable cutlets, methi vadas, theplas to aloo tikkis, green pea tikkis, and the all-time favourite, gobhi/mooli paratha, priced appropriately to suit the middle-class pocket.

Another Assocham survey says that consumption of such products is much higher in urban areas, especially metros, where life is fast-paced and stressful. The report says urban areas account for 72% sales of such products, with the north and west responsible for two-thirds of the sale.

The survey, 'Rising prices of fruits and vegetables', polled 5,000 people to evaluate the impact of rise in price of fruits and vegetables. Published in the first week of July, the survey was conducted in major cities such as Pune, Mumbai, Delhi-NCR, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh, Dehradun and Bengaluru. The maximum impact was felt in Delhi, followed by Mumbai, Ahmedabad, Kolkata, Chennai, Hyderabad and Pune.

Assocham's secretary general D S Rawat said the sudden spurt in vegetables prices had seriously hit the ordinary consumer, especially in metro cities. He added that consumers were now being forced to avoid fresh fruits and vegetables and turning to packaged foods. The study, conducted under the aegis of Assocham Social Development Foundation (ASDF), cited the rise in sales of packaged food, canned/dried processed food, frozen processed food, meal replacement products and condiments. Several households are stocking up on packaged juices, unable to afford fresh fruits (fresh apples priced anywhere between Rs 150 to Rs 180 a kg).

The last couple of weeks has seen a rise in sales of products such as aloo methi, aloo palak, bhindi masala, navratna korma, gobhi matar.

Most ready-to-eat food products are priced Rs 35 and upwards and serve 2-3 adults. In fact, with the boom in the packaged food industry, many companies have launched products that target the middle income group. A walk in any well-stocked grocery store in the city throws up countless options - from readymade vegetable cutlets, methi vadas, theplas to aloo tikkis, green pea tikkis, and the all-time favourite, gobhi/mooli paratha, priced appropriately to suit the middle-class pocket.

Another Assocham survey says that consumption of such products is much higher in urban areas, especially metros, where life is fast-paced and stressful. The report says urban areas account for 72% sales of such products, with the north and west responsible for two-thirds of the sale.