Cost Of Home-Cooked Veg Thali Plummet 8% In August; Here's Why

The primary factor contributing to this decline was a 51 per cent reduction in tomato prices, which represent approximately 14 per cent of the cost of a vegetarian thali, as per the report

The costs of both vegetarian and non-vegetarian thalis experienced declines compared to both the previous year and the previous month in August 2024, according to CRISIL MI&A Research estimates. The price of home-cooked vegetarian thalis fell by 8 per cent, while the cost of non-vegetarian thalis dropped 12 per cent year over year (YoY).

The primary factor contributing to this decline was a 51 per cent reduction in tomato prices, which represent approximately 14 per cent of the cost of a vegetarian thali, as per the report.

Tomato prices decreased from Rs 102 per kg in August 2023 to Rs 50 per kg in August 2024 due to fresh arrivals from southern and western states.

The report highlighted that fuel costs also played a prominent role, with a 27 per cent decrease bringing the price of a 14.2 kg LPG cylinder in Delhi down to Rs 803 in March 2024 from Rs 1,103 in August 2023. Additionally, prices of vegetable oil, chilli, and cumin—all of which together account for less than 5 per cent of the cost of a vegetarian thali—eased by 6 per cent, 30 per cent, and 58 per cent, respectively.

The cost reduction was more profound for non-vegetarian thalis, driven by an estimated 13 per cent drop in broiler prices, which make up around 50 per cent of the thali cost, states the report.

However, the overall decline in both vegetarian and non-vegetarian thali costs was moderated by an increase in the retail prices of onions and potatoes. Due to lower arrivals of rabi crops, onion prices rose by Rs 15 per kg and potato prices by Rs 13 per kg.

Speaking on the findings of the report, Pushan Sharma, Director- Research, CRISIL Market Intelligence and Analytics, said, “Prices of the three key vegetables showed a divergent trend in August—onion and potato surged by Rs 15 per kg (51 per cent) and Rs 13 per kg (53 per cent) on-year, respectively, due to lower arrivals, while tomato saw a sharp decline of Rs 52 per kg (51 per cent) due to fresh supplies. The decline in vegetarian thali cost is largely due to tomato prices, which are expected to decline further with fresh supplies from western and southern states coming into the market.”

“Potato prices are likely to remain firm on account of low production on-year due to late blight infestations in key producing states such as Gujarat, Punjab, Haryana and Uttar Pradesh. Onion prices, on the other hand, could see a further uptick in the near term given the approaching festive season and tight rabi supplies until the kharif stock starts arriving in mandis,” Sharma added.

The cost of vegetarian thalis fell by 4 per cent, while non-vegetarian thalis decreased by 3 per cent in August 2024 compared to July 2024. The main driver for the monthly decline was a 23 per cent drop in tomato prices, from Rs 66 per kg in July to around Rs 50 per kg in August.

The decrease in non-vegetarian thalis was partly due to a 1-3 per cent reduction in broiler prices in August, influenced by the Shravan month when non-veg consumption typically decreases. Despite these reductions, a 2 per cent increase in potato prices and a 3 per cent rise in onion prices in August prevented a more significant decrease in thali costs.