Veg Thali Price Continues To Rise In June; Sees 10% Jump From Previous Year: Report

The report reveals that the decreased acreage led to subdued arrivals, contributing to a 13 per cent YoY increase in rice prices, constituting 13 per cent of the total cost of the vegetarian thali

The decrease in the cost of the non-vegetarian thali was attributed to an estimated 14 per cent YoY decline in broiler prices (Image Sources: ABP Live AI)

The cost of a typical home-cooked vegetarian thali increased by 10 per cent in June compared to the previous year, whereas the cost of a non-vegetarian thali declined by 4 per cent, according to CRISIL MI&A Research estimates. The price surge in the vegetarian thali was primarily driven by significant year-on-year (YoY) increases of 30 per cent for tomatoes, 46 per cent for onions, and 59 per cent for potatoes (TOP). 

The prices of TOP surged because of reduced onion arrivals caused by a substantial decrease in rabi acreage, lower potato crop yields due to unseasonal rainfall in March, and virus infestations affecting the summer tomato crop due to high temperatures in major growing regions like Karnataka and Andhra Pradesh. This resulted in a 35 per cent YoY reduction in tomato arrivals.

Speaking on the report's findings, Pushan Sharma, Director—Research, CRISIL Market Intelligence and Analytics, said, "The cost of the home-cooked vegetarian thali has been on the rise since November 2023 due to rising vegetable prices. Tomatoes, onions, and potatoes have been the key contributors to this rise as adverse weather conditions have impacted their supply.”

“That said, going forward, thali prices are expected to be lower on-year due to the high base of last fiscal when tomato prices had surged. Sequentially, though, tomato prices will rise before correcting at the end of August as fresh supplies arrive from southern and western states,” Sharma added.

Additionally, the report reveals that the decreased acreage led to subdued arrivals, contributing to a 13 per cent YoY increase in rice prices, constituting 13 per cent of the total cost of the vegetarian thali. A dry spell during key kharif months affected pulse production (9 per cent of the thali cost), leading to a 22 per cent YoY price increase.

Conversely, the decrease in the cost of the non-vegetarian thali was attributed to an estimated 14 per cent YoY decline in broiler prices. This decline was primarily due to a high base from the previous fiscal year, along with an oversupply situation and lower feed costs.

Meanwhile, the cost of both vegetarian and non-vegetarian thalis increased month-on-month, rising by 6 per cent and 4 per cent, respectively. The cost of the vegetarian thali increased primarily due to higher vegetable prices, with potatoes, onions, and tomatoes seeing price hikes of 9 per cent, 15 per cent, and 29 per cent, respectively, attributed to reduced arrivals.

Similarly, the cost of the non-vegetarian thali also saw a jump, driven by elevated vegetable prices. However, the impact was moderated by a marginal 1 per cent increase in broiler prices, which constitute approximately 50 per cent of the total cost of the non-vegetarian thali, thereby preventing a more significant increase.