Vegetarian Thali Cost Hits 7-Month High At ₹29.1

The cost of a home-cooked vegetarian meal in India has reached its highest level in seven months, with the average cost of a vegetarian thali increasing to ₹29.1 in July. This marks a 2% monthly rise from ₹28.4 in June, according to Crisil Intelligence's monthly Roti Rice Rate report.

The main contributor to this increase was the surge in onion prices, which rose by 23% in July compared to June. Potato prices also increased by 4% during the month, while tomato prices declined by 1%. However, the fall in tomato prices was not enough to offset the sharp increase in onion costs.

On an annual basis, onion prices were 20% higher due to supply constraints caused by damage to stored rabi stocks. Unseasonal rainfall and hailstorms in Maharashtra during March and April affected crops and inventories, resulting in tighter supplies and higher market prices.

The cost pressure was further increased by rising input expenses, including a 11% increase in vegetable oil prices and a 10% increase in LPG cylinder prices. These increases were largely due to supply disruptions and higher energy costs linked to geopolitical tensions in West Asia.

The rise in vegetarian meal costs was partially moderated by lower prices of some vegetables, including potatoes, which fell 12% annually due to increased rabi production. Tomato prices also declined 2% year-on-year as delayed plantation cycles led to increased arrivals in July, helping ease prices.

In contrast, the cost of a non-vegetarian thali remained unchanged at ₹58.3 in July compared to the previous month. However, it was 9% higher than the same period last year, driven by higher broiler chicken prices.

The increase in food costs is likely to have a significant impact on household budgets, particularly for low-income families who spend a larger proportion of their income on food. As the prices of essential commodities continue to rise, it is likely that the cost of a vegetarian thali will remain high in the coming months.

The Crisil report highlights the need for policymakers to take steps to address the supply constraints and rising input costs that are driving up food prices. This could include measures to improve agricultural productivity, reduce transportation costs, and increase the availability of affordable cooking gas and edible oil.

In conclusion, the surge in onion prices and rising input costs have pushed up the cost of a vegetarian thali to its highest level in seven months. As the prices of essential commodities continue to rise, it is likely that the cost of a vegetarian thali will remain high, having a significant impact on household budgets and food security in India.