Photo Source; ANI
Home-cooked thali cost sees divergent trends: Veg thali up 10 %, non-veg thali down 4 % in June
New Delhi, July 5, 2024 (ANI): The cost of preparing a home-cooked vegetarian thali surged by 10 percent in June compared to the same period last year, while the cost of a non-vegetarian thali decreased by 4 percent, according to the latest estimates from CRISIL report.
This divergence in food costs has been largely influenced by significant changes in the prices of key ingredients.The increase in the cost of a vegetarian thali can be attributed to a sharp rise in the prices of essential vegetables--tomato, onion, and potato (TOP).
On-year, tomato prices shot up by 30 percent, onion prices soared by 46 percent, and potato prices increased by a staggering 59 percent. This surge in vegetable prices has largely been due to several adverse factors impacting supply.
The summer crop faced a major setback due to high temperatures in key growing regions like Karnataka and Andhra Pradesh. This led to a virus infestation and, subsequently, a 35 percent reduction in tomato arrivals.
The market saw lower onion arrivals as a result of a significant drop in rabi acreage, leading to a supply shortage and a spike in prices.Unseasonal rainfall in March adversely affected the yield of the potato crop, contributing to the price surge.
Furthermore, other staple ingredients for the vegetarian thali also witnessed price hikes. The cost of rice, which makes up about 13 percent of the veg thali, rose by 13 percent due to a dip in acreage and subdued arrivals.
Pulses, accounting for 9 percent of the thali's cost, saw a 22 percent increase in price, attributed to a dry spell during key kharif months affecting their production.
In contrast, the cost of a non-vegetarian thali decreased primarily due to a notable decline in broiler prices, which account for approximately 50 percent of the non-veg thali cost. Broiler prices fell by around 14 percent on a year-on-year basis,
Despite the annual trends, both vegetarian and non-vegetarian thalis saw a rise in costs on a month-on-month basis. The cost of the veg thali increased by 6 percent from May to June, driven by a 9 percent, 15 percent, and 29 percent rise in the prices of potato, onion, and tomato, respectively. These increases were due to continued low arrivals of these vegetables.
Similarly, the cost of the non-veg thali rose by 4 percent over the same period. While elevated vegetable prices contributed to this increase, the rise was mitigated by a modest 1 percent increase in broiler costs.
This trend of rising costs for the vegetarian thali has been observed since May, when the cost of a home-cooked vegetarian meal increased by 9 percent compared to the previous year, according to CRISIL report.
The key drivers for this increase were the soaring prices of tomatoes, potatoes, and onions, which have been consistently climbing since the beginning of the fiscal year.
The Ministry of Agriculture and Farmers Welfare has also noted a significant reduction in rabi crops and a decline in potato arrivals due to crop damage and disease, particularly in West Bengal.
This reduction in supply has pushed prices upwards. The Ministry anticipates a considerable drop in onion production this year, projecting a decline from 302.08 lakh tonnes last year to 242.12 lakh tonnes in 2023-24, adding to concerns about future price increases for food items.Conversely, tomato production is expected to see a slight increase of about 3.98 percent, reaching approximately 212.38 lakh tonnes.
The contrasting trends in the cost of non-veg thalis have been largely supported by an estimated 16 percent drop in broiler prices, which played a crucial role in keeping the costs down despite high base effects from the previous fiscal year. (ANI)