Softening of retail inflation has started reflecting in the food plates, with prices of both vegetarian and non-vegetarian thalis (full meals) witnessing a notable drop in August this year compared to the same time last year and the previous month, CRISIL MI&A Research noted in its latest report.
The data shows that on an annual basis, the cost of a home-cooked vegetarian thali declined by 8 per cent. On the other hand, the non-vegetarian thalis saw an even steeper drop of 12 per cent.
The reduction in the cost of the veg thali year-over-year was mainly due to a dramatic 51 per cent drop in tomato prices. Tomato constituted 14 per cent of the cost of the vegetarian thali in August.
Tomatoes, which constituted about 14 per cent of the cost of a vegetarian thali in August 2024, experienced a significant price drop of 51 per cent year-on-year. Prices fell from Rs 102 per kg in August 2023 to Rs 50 per kg in August 2024, owning to fresh arrivals from southern and western states.
Another major contributor that helped reduce the cost of the thali was a 27 per cent drop in LPG prices.
In March 2024, the price of a 14.2 kg LPG cylinder in Delhi was Rs 803, down from Rs 1,103 in August 2023, which positively contributed to the ease in the cost.
The month saw a declining thali cost as the prices of vegetable oil, chilli, and cumin, which together account for less than 5 per cent of the veg thali cost, also eased, falling by 6 per cent, 30 per cent, and 58 per cent, respectively, over the year.
As per observations, the drop in the cost of non-vegetarian thalis was due to a 13 per cent year-on-year drop in broiler chicken prices, which make up about 50 per cent of the total cost.
However, the decline in thali costs was partially capped by an increase in the prices of onions and potatoes.
Onions rose by Rs 15 per kg and potatoes by Rs 13 per kg due to lower arrivals from the rabi harvest.
The report further noted that on a monthly basis, the cost of a vegetarian thali dropped by 4 per cent. While the non-vegetarian thalis saw a 3 per cent decrease.
However, the decline in thali costs was partially capped by an increase in the prices of onions and potatoes.
Onions rose by Rs 15 per kg and potatoes by Rs 13 per kg due to lower arrivals from the rabi harvest.
The report further noted that on a monthly basis, the cost of a vegetarian thali dropped by 4 per cent. While the non-vegetarian thalis saw a 3 per cent decrease.
The month-on-month decline was primarily driven by a 23 per cent fall in tomato prices, which dropped from Rs 66 per kg in July 2024 to Rs 50 per kg in August 2024.
For non-vegetarian thalis, the lower costs were also linked to a 1-3 per cent drop in broiler chicken prices due to reduced non-veg consumption during the Shravan month in August.
However, the monthly increase in potato and onion prices by 2 per cent and 3 per cent, respectively, prevented a steeper decline in thali costs.
Source Name : Economic Times