Veg thali cost falls 8% on yr, non-veg dn 12% in Aug, says CRISIL arm
This story was originally published at 17:02 IST on 6 September 2024
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NEW DELHI – The cost of a home-cooked vegetarian thali fell 8% on year to 31.2 rupees in August and that of a non-vegetarian thali was down 12% from a year ago to 59.3 rupees, CRISIL's Market Intelligence and Analytics division said in a release today.
The report attributed the fall in the cost of the vegetarian thali to a 51% on-year drop in tomato prices. Tomato prices had crossed 100 rupees a kg in August 2023, but fell to 50 rupees a kg last month due to fresh arrivals, it said.
"Prices of the three key vegetables showed a divergent trend in August. While onion and potato (prices) surged by 15 rupees per kg and 13 rupees per kg on-year, respectively, due to lower arrivals, prices of tomato saw a sharp decline of 52 rupees per kg on fresh supplies," Pushan Sharma, director-research, CRISIL Market Intelligence and Analytics said in a written statement. "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."
A 27% on-year drop in the cost of liquefied petroleum gas cylinder contributed to the decline in thali prices, the report said. Furthermore, easing of prices of vegetable oil by 6%, chilli by 30% and cumin by 58%, which together account for less than 5% of the vegetarian thali, also contributed to the reduction in the total thali cost.
The decline in cost was sharper for a non-vegetarian thali, due to an estimated 13% on-year drop in prices of broiler, the report said. Broiler cost accounts for 50% of the total thali cost.
The cost of both the thalis also fell sequentially. On a month-on-month basis, the cost of vegetarian and non-vegetarian thali declined 4% and 3%, respectively, as per the report.
The sequential decline was again driven by tomato prices, which fell 23% on month from 66 rupees per kg in July to 50 rupees per kg in August. "For a non-vegetarian thali, the cost decline was due to an estimated 1-3% on-month decline in broiler prices due to the Shravan month in August, when non-veg consumption drops," the report said.
The downside, however, was restricted by a 2% and 3% on-month rise in the prices of potato and onion, respectively.
CRISIL sees potato prices remaining firm on account of lower production compared to a year ago due to late blight infestations in key producing states such as Gujarat, Punjab, Haryana and Uttar Pradesh.
Onion prices, on the other hand, could rise further in the near term given the approaching festival season and tight rabi supplies until the kharif stock starts arriving in mandis, Sharma said. However, anticipating the rise, the government Thursday began retail sales of onions at 35 rupees per kg in Delhi and Mumbai through mobile vans to cool down prices of the essential kitchen commodity.
A veg thali comprises roti, vegetables which include onion, tomato and potato, along with rice, dal, curd and salad. A non-veg thali has the same elements, except for dal, which is replaced by chicken or broiler, the report clarified. Broiler prices for August 2024 are estimated figures and weightages of ingredients do not vary based on volatility in commodity prices, it said. End
Reported by Pallavi Singhal
Edited by Tanima Banerjee
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