Burger King has scrapped tomatoes from its wraps and burgers in many Indian outlets after prices more than quadrupled . The burger chain one of Indias biggest with nearly outlets joins many McDonalds and Subway stores that have removed tomatoes from menus .
The US sandwich chain even cancelled the free cheese slices it offered for years . Rival Dominos meanwhile has tried bringing down prices to appeal to struggling consumers with a . pizza its cheapest in the world . The tomato supply crisis has coincided with a surge in prices by as much as per cent to record highs as monsoon rains disrupted crop and supply chains .
The pain is spreading with July retail inflation data released this week showing prices of vegetables rose . over a year . The cost of staples from onions and peas to garlic and ginger have all risen. If the prices remain high then eventually restaurants will have to take price increases said Amnish Aggarwal head of research at Indias Prabhudas Lilladher.
There is no other alternative. The price shocks pose a challenge for Prime Minister Narendra Modis government ahead of a national election next year. There are no other alternatives to the government . The government has been forced to deal with the price shocks .
The price shock pose a threat to the economy ahead of the national election in 2014. The government is set to face a tough times ahead of next year’s parliamentary elections in 2015. It has been criticised for not taking any further action. It is not looking for any further steps to take a decision to act.
It’ is not to take any further measures to control the cost of food inflation. Food inflation. It will be a ‘toughest’ to save the economy’.
