0 hidden charges. 0 forex

What the Sky-high Tomato Prices of 2023 Teach Us About Long-term Wealth Creation?

Reviewed by
Created on
July 13, 2023


What’s Inside

In various parts of the country, tomato prices have recently exceeded ₹100 per kg, triggering concerns among countless households. Recent reports have highlighted a staggering surge in tomato prices, skyrocketing by an alarming 160 per cent MoM in July, surpassing even the cost of petrol. 

While economists are attributing the tomato price hike to the simple concept of supply and demand, there appear to be deeper factors at play. The erratic climate trends and their adverse effects on tomato production have magnified the issue, disrupting the delicate balance between supply and demand. 

The Great Tomato Tango 

Imagine narrating this to your children a couple of decades later - Once upon a time, a juicy saga unfolded in the land of spices and curry, leaving people with their taste buds tingling and wallets whimpering. India's notorious tomato price hike shook the nation to its culinary core. 

While I generally order groceries online, I decided to step out and pick out tomatoes and see what the debacle was all about. When the vendor told me that the tomatoes were ₹120/kg, I mumbled a few choice words under my breath; it was then that it hit me: our elders were right about sowing and reaping. 

What You Reap is What You Sow 

According to three economists, the recent unexpected spike in vegetable prices, particularly tomatoes, may propel India's retail inflation to reach around 5.5% during the July-September quarter.

Hear me out - I think, amidst the chaos and sauce stains, lies a valuable lesson about the art of sowing and reaping and how wise investments can help us save, especially during steep inflation periods. Like planting seeds, investments such as mutual funds, stocks, and long-term strategies can help us grow our savings and sustain future inflation. 

Just as crops, our investments require attention and nurturing. We must stay informed, study market trends, and make informed decisions. This diligence helps us weather the storm and navigate the ever-changing financial landscape. 

Sowing the Seeds of Savings 

To see the long-term impact of your investments, it is essential to follow some textbook as well dynamic tips:

  1. Define your long-term financial goals before investing in mutual funds or other tools. Whether saving for retirement, funding a child's education, or buying a house, having clear objectives helps you choose the suitable investment tool and stay focused on your investment journey.
  1. Understanding your risk tolerance by considering your age, financial situation, and comfort with market fluctuations is essential. If you have a higher risk appetite, you may opt for equity-oriented funds, while conservative investors might lean towards debt or balanced funds.
  1. Diversifying your portfolio is key to mitigating risk and maximising returns. Allocate your investments across different asset classes, such as stocks, bonds, and money market instruments. 
  1. Choose consistent performers, especially if you’re new to investing. Consider funds that have consistently outperformed their benchmark index and peers to increase the probability of achieving your financial goals.
  1. Practice patience and discipline to avoid making impulsive decisions based on short-term market fluctuations. Stay focused on your investment horizon and resist the urge to time the market. 

To Conclude

While the abrupt surge in tomato prices has the potential to act as a new catalyst for inflation,  let the great tomato tango be a reminder of the timeless wisdom imparted by our elders. By sowing the seeds of savings through wise investments, we can grow a sturdy financial foundation that withstands the test of time. 

Be Future-Ready with Fi

As a money management platform, Fi offers several investment options to help you save better. Be it short-term or long-term — it's easy to invest with a simple swipe of your phone's screen. Fi offers a Peer-to-Peer investment feature called Jump that helps beat inflation and enables you to earn up to 9% p.a on your investment. Fi also enables you to invest in Mutual Funds, fully commission-free, suited for novice & seasoned investors. You can invest daily, weekly, or monthly via automatic payments or SIPs — created with one screen tap. But if you want to save up for a short-term goal & earn interest on it, select our super-flexible Smart Deposit. If you're looking for higher/stable returns, opt for a Fixed Deposit. 


Investment and securities are subject to market risks. Please read all the related documents carefully before investing. The contents of this article are for informational purposes only, and not to be taken as a recommendation to buy or sell securities, mutual funds, or any other financial products.
Share this article
Copied Link!
What the Sky-high Tomato Prices of 2023 Teach Us About Long-term Wealth Creation?


View similar articles in
Get the Fi app