Veg, non-veg thali prices rise in June

On a year-on-year basis, the cost of a representative homecooked veg thali rose 10 per cent in June, while that of the non-veg thali declined 4 per cent, CRISIL MI&A Research said. The cost of the veg thali increased due to a surge of 30 per cent, 46 per cent and 59 per cent on-year in prices of tomato, onion and potato (TOP), respectively, largely due to low base of last fiscal.

Crisil said TOP prices surged because of lower onion arrivals due to significant drop in rabi acreage, decline in yield for potato crop due to unseasonal rainfall in March, and virus infestation in tomato summer crop due to high temperatures in key growing regions of Karnataka and Andhra Pradesh that tamped tomato arrivals down 35 per cent on-year.

“A dip in acreage, resulting in subdued arrivals, has led to a 13 per cent on-year increase in the price of rice (accounting for 13 per cent of the veg thali cost), while a dry spell in key kharif months impacted production of pulses (accounting for 9 per cent of the veg thali cost), leading to a price increase of 22 per cent on-year,” it said.

For non-veg thali, the decrease in cost was due to an estimated decline of 14 per cent on-year in broiler prices on a high base of last fiscal, coupled with oversupply situation and lower feed cost on-year, Crisil said.

The average cost of preparing a thali at home is calculated based on input prices prevailing in north, south, east and west India. Monthly change reflects the impact on the common man’s expenditure. The data also reveals the ingredients (cereals, pulses, broilers, vegetables, spices, edible oil, cooking gas) driving changes in the cost of a thali, according to the rating agency.

A veg thali comprises roti, vegetables (onion, tomato, and potato), rice, dal, curd, and salad. For non-veg thali, the constituents remain the same but for dal, which is replaced by chicken.

India’s retail inflation rate, as measured by the Consumer Price Index (CPI), was 4.75 per cent in May 2024, down from 4.83 per cent in April 2024. The RBI’s monetary Policy Committee (MPC) retained the Repo rate at 6.50 per cent in the June monetary policy.