Food prices: Veg thali cost goes up 11% in September due to high vegetable prices, says CRISIL report

Food inflation once again spikes, impacting daily lives and monthly finances. According to the latest monthly report by Crisil released on Friday, the prices of vegetables surged, leading to an 11% year-on-year increase in the cost of a vegetarian thali. Vegetables, encompassing 37% of the thali cost, experienced a notable price hike. 

In contrast, a decline in chicken prices caused the cost of a non-vegetarian thali to decrease by approximately 2%. Consequently, the expected price of a non-veg thali stood at around Rs 59.3, while the vegetarian version was priced at Rs 31.3 in September, as detailed in the report.

"The veg thali cost rose due to increase in the prices of vegetables, which collectively account for 37% of the thali cost," latest Crisil report said.

The cost of the vegetable thali increased to Rs 31.3 from Rs 28.1 a year ago due to the rise in vegetable prices, which make up 37% of the total thali cost. Prices of onion, potato, and tomato increased by 53%, 50%, and 18% respectively in September, attributed to lower arrivals of onion and potato and adverse weather affecting tomato output in Andhra Pradesh and Maharashtra. 

Additionally, the price of pulses, accounting for 9% of the veg thali cost, increased by 14% due to a drop in production last year leading to lower opening stock this year, further contributing to the overall price increase.

Considering input prices across different regions of India, the average cost of preparing a home-cooked thali is calculated. The monthly reports from Crisil analyse the impact of these prices on the overall expenditure of the average consumer. The data takes into account the prices of various essential ingredients such as cereals, pulses, poultry, vegetables, spices, edible oil, and cooking gas, all of which contribute to fluctuations in the thali's cost.

“An 11 per cent drop in fuel cost – from Rs 903 for a 14.2 kg LPG cylinder in Delhi in September last year to Rs 803 in March this year – prevented further increase in the thali cost,” Crisil said.

According to Crisil, the non-veg thali, priced at Rs 59.3, saw a decline of 13% in broiler prices compared to last year, providing some relief as broiler prices account for 50% of the thali cost. 

Both veg and non-veg thali costs remained stable on a monthly basis. Onion prices increased by 14% due to low rabi stock in the market and a reduction in export duty. However, potato prices decreased by 2% due to stocks released from cold storage, and tomato prices fell by 9% due to higher arrivals from southern and western markets, preventing a further increase in thali cost.

In a vegetarian thali, you will find roti, vegetables (including onion, tomato, and potato), rice, dal, curd, and salad. The non-vegetarian thali includes the same components as the vegetarian one, with the exception of dal, which is substituted with chicken.

India saw an increase in retail inflation in August 2024, with the Consumer Price Index (CPI) rising to 3.65%, up from 3.54% in July 2024. The Reserve Bank of India's Monetary Policy Committee (MPC) maintained the Repo rate at 6.50% during the August monetary policy. The committee is scheduled to meet next week to evaluate the policy further.