In August, the costs of vegetarian and non-vegetarian thalis declined 7 per cent and 8 per cent on-year, respectively
Led by a sharp drop in prices of onion, potato and pulses, the costs of home-cooked vegetarian thalis declined by 7 per cent on-year in August. The non-vegetarian thali also got 8 per cent cheaper in August on a YoY basis.
In its Roti Rice Rate (RRR) report, Crisil Intelligence noted that prices of potato and onion declined 31 per cent and 37 per cent on-year, respectively, on a high base. In the year-ago period, potato production had shrunk 5 to 7 per cent due to blight infestation and weather changes, pushing up the prices. This year, the production is estimated to be 3 to 5 per cent higher, as per the report.
For onions, an 18 to 20 per cent rise in annual production has led to a fall in prices this year. Prices of pulses declined 14 per cent on-year, driven by higher production and stock levels compared with the year-ago period. The report emphasised that vegetable oil prices surged 24 per cent on-year due to higher demand at the start of the festival season. Additionally, a 6 per cent on-year increase in prices of liquefied petroleum gas cylinders limited the decline in the overall cost of thalis.
The report pointed out that the decline in the cost of non-vegetarian thali was driven by around 10 per cent on-year drop in broiler prices, which make up about 50 per cent of the cost. Lower vegetable and pulse prices also supported. However, on-month, the cost of vegetarian and non-vegetarian thalis rose 4 per cent and 2 per cent, respectively, in August.
Crisil Intelligence added that the rise in the cost of non-vegetarian thali was capped as oversupply of broilers kept their prices stable on-month despite a rise in demand with the conclusion of the Shravan month.
