 "Big Bite: Why a vegetarian thali has become costlier, chicken cheaper")
The beloved home-cooked vegetarian meal has just become more expensive.
According to the “Roti Rice Rate” monthly report released by CRISIL M&A Research, the average cost of a vegetarian thali surged by nine per cent in May, reaching a four-month high further putting a strain on the middle-class household budget.
In contrast, the report noted that the cost of a non-vegetarian thali decreased by seven per cent in the same month, thanks to a decline in broiler prices.
What factors have contributed to the price hike in vegetarian meals, and what does it mean for the everyday consumer?
How much does a vegetarian thali cost?
The average vegetarian thali in India consists of roti, vegetables (onions, tomatoes, and potatoes), rice, dal, curd, and salad was priced at Rs. 27.8 last month, an increase from Rs 25.5 in the year-ago period. However, compared to April of this year, the pace of increase in cost is much slower (one per cent month-on-month) at Rs 27.4 a plate.
What’s behind the price rise?
One of the primary drivers of this price hike is the surge in vegetable prices.
The cost of tomatoes, potatoes, and onions, staples in Indian households, increased by 39 per cent, 41 per cent, and 43 per cent year-over-year respectively, according to CRISIL. This indicates a slight softening in tomato inflation, which was 40 per cent in April, while potato and onion prices accelerated from the 38 per cent and 40 per cent rises observed in the previous month.
Impact Shorts
More Shorts“Lower onion arrivals on account of a significant drop in rabi acreage coupled with a decline in potato arrivals on account of the adverse impact of late blight and crop damage in West Bengal contributed towards the increase in prices,” CRISIL said.
Late blight is a fungal disease in plants caused by pathogens which, if not properly managed in time, can damage the entire crop.
Recently, the Ministry of Agriculture and Farmers Welfare had also anticipated a significant drop in onion production this year, adding apprehensions of further increases in the cost of food items. It predicted onion production is projected to decline from 302.08 lakh tonnes last year to 242.12 lakh tonnes in 2023-24, a decrease of about 60 lakh tonnes from the last year.
The CRISIL report also connected the escalating cost of rice, constituting 13 per cent of the vegetarian thali’s costs, and pulses, which make up nine per cent of expenditure, to the overall surge in the price.
“A dip in acreage, resulting in subdued arrivals, led to a 13 per cent on-year increase in the price of rice, while lower reservoir levels impacted the production of pulses leading to a 21 per cent increase in prices on-year,” it added.
On the other hand, prices of cumin, chilli and vegetable oil fell by 37 per cent, two per cent and eight per cent, respectively, halting a further increase in the cost.
The average expense of preparing a thali at home is determined by considering input prices across various regions of India, including the north, south, east, and west. The monthly variation in these costs reflects its impact on the everyday expenses of the common man.
What about non-vegetarian meals?
Having a non-vegetarian thali, which replaced dal with chicken, has become cheaper.
The non-vegetarian thali cost Rs 55.9 in May compared to Rs 59.9 in the same period a year ago. This drop in cost is attributed to an estimated 16 per cent decline in broiler prices year-on-year, accounting for 50 per cent of the non-veg thali’s cost.
Food inflation, which holds a 39.1 per cent weight in the Consumer Pricing Index gauge, has remained consistently high, surpassing eight per cent for six months. The pressure on food prices persists, exacerbated by ongoing heatwaves. However, CRISIL anticipates that the forthcoming monsoon rains could alleviate this pressure, provided they are well-distributed in terms of both timing and geography.
With input from agencies
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