Non-vegetarian thali experiences a slower 6 per cent rise amidst surging vegetable prices
Inflation is now impacting the cost of thalis across India, with the price of a vegetarian thali increasing by 11 per cent and a non-vegetarian thali by 6 per cent in July on a month-over-month basis, according to CRISIL MI&A Research estimates. However, on a year-over-year basis, the scenario presents a different picture. The cost of a home-cooked vegetarian thali in July 2024 decreased by 4 per cent, while the non-vegetarian thali saw a more significant decline of 9 per cent.
The reduction in the cost of the vegetarian thali year-over-year is largely attributed to a dramatic 40 per cent drop in tomato prices, which had soared to Rs 110 per kg in July 2023 due to flash floods disrupting supply from northern states and pest infestations in Karnataka. Despite this, the overall decline in the cost of the vegetarian thali was somewhat offset by substantial annual increases in the prices of onions and potatoes, which rose by 65 per cent and 55 per cent respectively, owing to lower arrivals.
For the non-vegetarian thali, the year-on-year cost decrease was mainly driven by an estimated 11 per cent decline in broiler prices, which had been at a high base during fiscal 2024. A considerable portion of the month-over-month increase in the cost of the vegetarian thali, specifically 7 per cent out of the total 11 per cent rise, can be attributed to the skyrocketing price of tomatoes. Tomato prices surged by 55 per cent on-month, rising from approximately Rs 42 per kg in June to around Rs 66 per kg in July, primarily due to adverse weather conditions.
High temperatures negatively affected the summer crop in Karnataka and Andhra Pradesh, while scattered rainfall in Karnataka during May led to an escalation in whitefly infestations, further impacting crop output. Other staple vegetables also saw significant price increases, with onions rising by 20 per cent and potatoes by 16 per cent month-on-month. The increase in onion prices was linked to lower rabi production, while a late blight infestation in Punjab, Gujarat and Uttar Pradesh adversely affected potato yields.
In contrast, the cost of the non-vegetarian thali rose at a slower pace compared to the vegetarian thali, primarily due to stable broiler prices, which constitute more than 50 per cent of the total cost of a non-vegetarian thali. The average cost of preparing a thali at home is calculated based on input prices from various regions across India—north, south, east and west. These monthly changes reflect the broader impact on household expenditures and highlight the driving factors behind the changes in thali costs, including prices of cereals, pulses, broilers, vegetables, spices, edible oil and cooking gas.
