Here’s how inflated prices of onions, tomatoes, potatoes and cooking oils are impacting the cost of a home-cooked meal
Nov 9, 2024, 10:16 IST
In October 2024, the cost of a home-cooked vegetable thali soared by 20% compared to the previous year, while a non-vegetarian thali, after a steady year-long price decline, experienced a 5% increase, according to Crisil Market Intelligence & Analytics' latest Roti Rice Rate (RRR) report. This price spike was largely driven by higher costs for vegetables and cooking oils during the festival season.
The surge in prices for key vegetables, including tomatoes, onions and potatoes, was significant. Crisil's Pushan Sharma explained that adverse weather events had delayed harvests in major producing regions, with incessant September rainfall affecting kharif onions, damaging tomato crops, and reducing cold storage stocks of potatoes. Consequently, tomato prices more than doubled year-on-year, rising from Rs 29/kg to Rs 64/kg. Onion prices climbed by 46%, and potato prices jumped 51% compared to October 2023.
Although a sharp fuel cost reduction over the year – with LPG cylinder prices down 11% in Delhi – helped offset the rise in thali costs, vegetable inflation remained prominent. For non-vegetarian thalis, a 9% drop in broiler prices cushioned the impact of vegetable price hikes, as poultry comprises about half of the thali cost.
The ongoing price hikes stem from several factors, including adverse weather. Heavy September rains delayed the arrival of the kharif harvest, leading to a shortage of new onion stock in major markets like Lasalgaon. As a result, onion prices increased sharply from Rs 47.70 per kg to Rs 57.70 per kg in early November. Tomatoes followed suit, with prices rising by around 25% within a week at Nashik’s Pimpalgaon APMC. In major cities like Delhi, onions are retailing at around Rs 80 per kg, intensifying concerns among consumers.
The hike has affected daily food budgets across the country, with citizens voicing their distress. Faiza, a consumer in Delhi, shared that the price hikes are impacting household eating habits, while Dr. Khan in Mumbai noted that his grocery budget has doubled with onion prices reaching Rs 70-80 per kg. Even with reduced sales, onions remain an essential staple, keeping consumers purchasing despite the inflated rates.
Looking forward, Crisil expects vegetable prices to moderate in November as supply from key states increases. Tomato prices are likely to stabilise, while onion costs should ease as new kharif crops reach the markets. However, potato prices may take longer to decrease, with fresh arrivals expected only by December or January.
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The surge in prices for key vegetables, including tomatoes, onions and potatoes, was significant. Crisil's Pushan Sharma explained that adverse weather events had delayed harvests in major producing regions, with incessant September rainfall affecting kharif onions, damaging tomato crops, and reducing cold storage stocks of potatoes. Consequently, tomato prices more than doubled year-on-year, rising from Rs 29/kg to Rs 64/kg. Onion prices climbed by 46%, and potato prices jumped 51% compared to October 2023.
Although a sharp fuel cost reduction over the year – with LPG cylinder prices down 11% in Delhi – helped offset the rise in thali costs, vegetable inflation remained prominent. For non-vegetarian thalis, a 9% drop in broiler prices cushioned the impact of vegetable price hikes, as poultry comprises about half of the thali cost.
The ongoing price hikes stem from several factors, including adverse weather. Heavy September rains delayed the arrival of the kharif harvest, leading to a shortage of new onion stock in major markets like Lasalgaon. As a result, onion prices increased sharply from Rs 47.70 per kg to Rs 57.70 per kg in early November. Tomatoes followed suit, with prices rising by around 25% within a week at Nashik’s Pimpalgaon APMC. In major cities like Delhi, onions are retailing at around Rs 80 per kg, intensifying concerns among consumers.
The hike has affected daily food budgets across the country, with citizens voicing their distress. Faiza, a consumer in Delhi, shared that the price hikes are impacting household eating habits, while Dr. Khan in Mumbai noted that his grocery budget has doubled with onion prices reaching Rs 70-80 per kg. Even with reduced sales, onions remain an essential staple, keeping consumers purchasing despite the inflated rates.
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