In September, a decline in tomato prices contributed to a significant reduction in the cost of both vegetarian and non-vegetarian thalis, offering relief to consumers grappling with soaring prices.
The cost of a vegetarian thali decreased by 17 per cent month-on-month (MoM) in September. The primary driver of this reduction was the substantial drop in tomato prices, plummeting by 62 per cent MoM to Rs 39 per kg in September 2023 from Rs 102 per kg in August. This information is based on the Roti Rice Rate, which is Crisil’s monthly indicator of food plate cost.
On the other hand, onion prices witnessed a 12 per cent MoM increase in September and are anticipated to remain firm due to the expected lower output in kharif 2023, according to estimates by the ratings agency.
The cost of a non-vegetarian thali also saw a decline of 9 per cent MoM, primarily influenced by a 2-3 per cent estimated increase in broiler prices, which constitute more than 50 per cent of the total thali cost.
Recent data revealed that retail inflation, measured by the Consumer Price Index (CPI), moderated in August, driven by a reduction in food prices but still remained above the RBI’s comfort level.
In August, retail inflation rose by an annual 6.8 per cent, a slowdown from the 15-month high of 7.4 per cent in July. Food inflation eased to 9.9 per cent in August from 11.5 per cent in July, with rural inflation higher at 7 per cent and urban inflation at 6.6 per cent.
The cost of fuel, accounting for 14 per cent and 8 per cent of the total cost of vegetarian and non-vegetarian thalis, respectively, declined by 18 per cent MoM in September. This reduction was attributed to the cost of a 14.2 kg cooking gas cylinder falling to Rs 903 from Rs 1,103.
Chillies, experiencing a 31 per cent month-on-month decrease, also contributed to a moderation in thali costs. The average cost of preparing a thali at home is calculated based on input prices prevailing in north, south, east, and west India. The monthly change reflects the impact on the common man’s expenditure, and the data highlights the ingredients (cereals, pulses, broilers, vegetables, spices, edible oil, cooking gas) influencing changes in thali costs.
