Vegetarian thali cost drops 8% in August, driven by low tomato prices: Crisil
This decline was mainly caused by significant price reductions in basic household products.
The cost of preparing a thali at home saw a significant decline in August 2024, both year-on-year and month-on-month, according to Crisil’s latest Market Intelligence & Analytics (MI&A) Research. Crisil’s Roti Rice Rate index showed that the price of vegetarian (veg) thalis declined by 8 percent year-on-year (YoY), while non-veg thalis saw an even sharper decline of 12 percent YoY.
This decline was mainly due to significant price reductions in home staples, mainly tomatoes, vegetable oil and spices. Lower fuel costs and broiler prices also contributed to the lower expenditure.
Key factors behind lower thali cost:
Tomato prices: Tomatoes, which account for about 14 per cent of the cost of a veg thali, played a major role in the overall price decline. Tomato prices fell 51 per cent year-on-year, from Rs 102 per kilogram in August 2023 to Rs 50 per kilogram in August 2024. This sharp decline is attributed to fresh supplies from southern and western states.
Lower fuel costs: The price of liquefied petroleum gas (LPG) cylinders also fell significantly, further reducing the overall cost of a thali. In March 2024, the price of a 14.2 kg LPG cylinder in Delhi was Rs 803, down 27 per cent from the Rs 1,103 recorded in August 2023.
Vegetable oil and herbs: Other ingredients like vegetable oil, chilli and cumin, which together account for less than 5 percent of the cost of veg thali, also saw a decline. Prices of vegetable oil fell by 6 percent, chilli by 30 percent and cumin by a significant 58 percent YoY.
Broiler prices:The cost of non-vegetarian thalis fell further as the price of broilers fell by 13 percent. Broilers account for almost 50 percent of the cost of a non-vegetarian meal.
Monthly Thali Cost Reductions
On a month-on-month basis, the cost also declined, with a decline of 4 percent for vegetarian thali and 3 percent for non-vegetarian thali from July to August 2024. This was mainly driven by a further decline in tomato prices, which declined by 23 percent quarter-on-quarter, from Rs 66 per kilogram in July to Rs 50 per kilogram in August.
For the non-vegetarian thali, the fall in cost was also attributed to a 1-3 percent drop in broiler prices, a typical trend during the Shravan month, when non-vegetarian consumption declines across the country due to religious customs.
However, a 2 percent increase in potato prices and a 3 percent increase in onion prices on a month-on-month basis limited the chances of a more substantial decline in thali costs.
This cost reduction is a welcome relief for households across India, where food inflation is a concern.
First publication: 06 Sep 2024 | 13:49 IST