In a recent report by rating agency CRISIL, the cost of a vegetarian thali surged by 10% in November compared to October, attributing the spike to reduced Kharif output owing to irregular rainfall and amplified demand during the festive season. Simultaneously, the cost of a non-vegetarian thali escalated by 5% month-on-month (MoM).
CRISIL’s Roti Rice Rate index highlighted the primary factors contributing to the uptick in the vegetarian thali’s price. The surge is primarily rooted in a 58% surge in onion prices and a 35% hike in tomato prices. Comparatively, when juxtaposed with November of the previous year, the cost of the vegetarian thali witnessed a 9% change.
Detailing the year-on-year (YoY) increase, CRISIL outlined a 9% rise in the cost of the vegetarian thali. This surge stems from a substantial 93% surge in onion prices and a 15% increase in tomato prices. Additionally, pulses, constituting 9% of the thali’s cost, observed a significant 21% YoY surge in prices.
The vegetarian thali typically encompasses roti, vegetables (onion, tomato, and potato), rice, dal, curd, and salad. CRISIL’s computation of the thali’s average cost considers prevalent input prices across northern, southern, eastern, and western regions of India.
Contrarily, the increase in prices for the non-vegetarian thali remained moderate due to a decline in broiler prices, a major component accounting for 50% of its total cost. Both thalis share similar constituents, with the non-vegetarian version substituting dal with chicken.
Comparing November’s costs to the same period last year, the cost of the non-vegetarian thali remained steady. October witnessed a slight decline of 1% and 3% in the costs of vegetarian and non-vegetarian thalis, respectively, in comparison to September. This dip was attributed to reduced prices of potatoes, tomatoes, and broiler chicken.
In efforts to curb food inflation, the government has initiated the sale of subsidised onions at Rs 25 per kg through entities like the National Cooperative Consumers’ Federation of India Limited (NCCF), National Agricultural Cooperative Marketing Federation of India (NAFED), KendriyaBhandar, and state-controlled cooperatives. This move aims to mitigate the impact of soaring onion prices on consumers.
The steep rise in the cost of the vegetarian thali, driven largely by the surge in onion and tomato prices, has notably impacted household budgets across regions. With these staple vegetables constituting a significant portion of the Indian culinary landscape, any fluctuations in their prices directly influence the affordability and accessibility of meals for households.
CRISIL’s insights into the year-on-year surge underscore the persistent challenges faced by consumers amid inflationary pressures. The substantial increases in onion and tomato prices, coupled with a notable uptick in pulses, have intensified concerns regarding food affordability and accessibility, especially for the economically vulnerable sections.
The stability in the cost of the non-vegetarian thali, particularly in comparison to the previous year, offers a semblance of relief amidst the overall inflationary trends. However, the shift in prices of key components, notably the fluctuations in broiler prices, highlights the volatility within the food market, necessitating proactive measures to ensure price stability and accessibility of essential food items.
The government’s initiatives to offer subsidised onions through various cooperative federations and entities reflect an attempt to alleviate the burden of escalating vegetable prices on consumers. Nevertheless, these measures may require sustained efforts and strategic interventions to navigate the multifaceted challenges posed by fluctuating food prices and ensure the affordability of essential food items for the masses.