Food Inflation Bites As Thali Costs Climb In May
FMCG Food

Food Inflation Bites As Thali Costs Climb In May

Vegetarian thali prices increased 5% and non-vegetarian thali costs rose 7% year-on-year amid rising input costs and heatwave-related supply disruptions

 

The cost of preparing home-cooked vegetarian and non-vegetarian thalis increased in May, driven by higher prices of tomatoes, vegetable oils, liquefied petroleum gas (LPG) and poultry, according to the latest Roti Rice Rate report by Crisil Intelligence.

The report found that the cost of a vegetarian thali rose 5 per cent year-on-year in May, while the cost of a non-vegetarian thali increased 7 per cent over the same period. The sharper rise in non-vegetarian meal costs was largely due to higher broiler chicken prices, which account for nearly half the cost of a non-vegetarian thali.

According to Crisil, tomato prices surged 57 per cent year-on-year to Rs 36 per kg in May from Rs 23 per kg a year earlier. The increase was attributed to a decline in rabi production in southern states, lower summer acreage and heat-related crop losses. Meanwhile, vegetable oil prices rose 8 per cent and LPG prices increased 7 per cent, adding to household cooking expenses.

The increase in thali costs was partially offset by softer prices of onions, potatoes and pulses. Onion prices declined 6 per cent year-on-year due to fresh rabi arrivals, while potato prices fell 14 per cent following higher rabi output and the release of cold-storage stocks. Pulse prices also eased by 2 per cent, supported by duty-free imports.

On a month-on-month basis, both vegetarian and non-vegetarian thali costs increased by 3 per cent in May. The rise was driven by a 23 per cent jump in tomato prices compared with April, alongside marginal increases in potato and onion prices. Broiler chicken prices also moved higher due to tighter supplies.

Crisil Intelligence noted that intense summer heat affected poultry production, leading to higher bird mortality and lower supply, which pushed broiler prices up by an estimated 9 per cent year-on-year.

Looking ahead, food inflation pressures may remain elevated in the coming months. Crisil expects tomato prices to stay firm through June-August due to lower summer sowing and weather-related concerns in key growing regions. Potato prices could also rise as cold-storage inventories replace fresh harvest supplies, while onion prices may edge up amid lower production estimates.

The latest data marks a sharp reversal from the trends seen earlier this year when falling vegetable and poultry prices had helped moderate thali costs across the country.

 

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