Softening of retail inflation has started reflecting in the food plates, with prices of both vegetarian and non-vegetarian thalis (full meals) witnessing a notable drop in August this year compared to the same time last year and the previous month, CRISIL MI&A Research noted in its latest report.
The data shows that on an annual basis, the cost of a home-cooked vegetarian thali declined by 8 %. On the other hand, the non-vegetarian thalis saw an even steeper drop of 12 %. The reduction in the cost of the veg thali year-over-year was mainly due to a dramatic 51 % drop in tomato prices. Tomato, which constituted 14 % of the cost of the vegetarian thali in August, experienced a significant price drop of 51 % year-on-year. Prices fell from Rs 102 per kg in August 2023 to Rs 50 per kg in August 2024, owning to fresh arrivals from southern and western states.
Another major contributor that helped reduce the cost of the thali was a 27 % drop in LPG prices. In March 2024, the price of a 14.2 kg LPG cylinder in Delhi was Rs 803, down from Rs 1,103 in August 2023, which positively contributed to the ease in the cost. The month saw a declining thali cost as the prices of vegetable oil, chili, and cumin, which together account for less than 5% of the veg thali cost, also eased, falling by 6%, 30%, and 58%, respectively, over the year.
As per observations, the drop in the cost of non-vegetarian thalis was due to a 13% year-on-year drop in broiler chicken prices, which make up about 50 % of the total cost. However, the decline in thali costs was partially capped by an increase in the prices of onions and potatoes. Onions rose by Rs 15 per kg and potatoes by Rs 13 per kg due to lower arrivals from the rabi harvest.
The report further noted that on a monthly basis, the cost of a vegetarian thali dropped by 4%. While the non-vegetarian thalis saw a 3% decrease. The month-on-month decline was primarily driven by a 23 % fall in tomato prices, which dropped from Rs 66 per kg in July 2024 to Rs 50 per kg in August 2024.
For non-vegetarian thalis, the lower costs were also linked to a 1-3 % drop in broiler chicken prices due to reduced non-veg consumption during the Shravan month in August. However, the monthly increase in potato and onion prices by 2 % and 3 %, respectively, prevented a steeper decline in thali costs.
