Higher tomato, LPG and vegetable oil prices made home-cooked vegetarian and non-vegetarian meals more expensive in April, while Crisil warned that key kitchen staples may remain costly in the coming months
The cost of preparing both vegetarian and non-vegetarian meals at home increased 2 per cent year-on-year in April, mainly due to a sharp rise in tomato prices and higher cooking fuel expenses, according to Crisil Intelligence’s latest Roti Rice Rate (RRR) report.
The report noted that tomato prices jumped 38 per cent compared to the same period last year, largely because of lower output following reduced acreage in southern states. At the same time, prices of vegetable oil and liquefied petroleum gas (LPG) cylinders climbed 7 per cent each amid ongoing global supply-side pressures.
“The cost of both home-cooked vegetarian and non-vegetarian thalis rose 2% on-year in April as tomato, vegetable oil and LPG cylinders became expensive,” said Pushan Sharma.
Tomato Prices May Rise Further
Crisil cautioned that tomato prices could remain elevated in the coming months and may witness another spike during July and August. The agency attributed this outlook to weaker summer sowing, poor price sentiment among farmers, and possible heatwave-related disruptions in major northern producing regions.
The report also highlighted concerns over onion and potato prices. Onion rates are expected to stay firm due to an estimated 4-6 per cent drop in rabi crop production this year. Potato prices, too, could move higher as harvesting season ends and stored produce from cold storage facilities begins reaching the market.
In addition, vegetable oil prices are likely to remain under pressure in the near term because of continued geopolitical uncertainty in West Asia, Crisil said.
However, the report offered some relief on pulses, whose prices are expected to stay subdued due to adequate availability and muted demand. Crisil said government buffer stock releases, favourable import parity and stable domestic arrivals are likely to keep supplies sufficient despite lower domestic production.
