Surging onion prices have toppled governments in India. Now there's a new threat looming for policymakers - tomatoes. After touting better food management as a reason for record-low inflation during much of the summer, a surge in the costs of vegetables and fruits is causing price pressures to simmer. Tomatoes have been the main culprit so far, as poor transport and a lack of cold storage facilities lead to wastage of as much as 16% of produce every year. Such inefficiencies and India's 1.3-billion population distinguishes it from the global market, where agricultural costs are falling. Food accounts for 46% of India's consumption basket, which means it plays an outsize role in determining headline inflation. "The present low level of food prices is unusual and is vulnerable to upward pressures," Reserve Bank of India governor Urjit Patel said in the minutes of the latest monetary policy meeting. "An assessment of whether the recent deflation in food items is sustainable, despite a ...
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