Decline in Tomato Prices Makes Home-Cooked Veg Thali Cheaper in November: CRISIL Report
Tomato price decline made home-cooked vegetarian thali 2% cheaper in November, says CRISIL report. Rising potato and onion costs capped further reduction. Non-veg thali costs remained stable.
The cost of a home-cooked vegetarian thali dropped by 2% in November compared to October, thanks to a significant 17% month-on-month decline in tomato prices, according to a report by CRISIL Market Intelligence and Analytics. However, the cost of a non-vegetarian thali remained stable due to offsetting factors.
Factors Influencing Thali Costs
The report highlighted that fresh tomato supplies from Madhya Pradesh, Maharashtra, and Gujarat in October contributed to the price decline. However, lower arrivals in November capped any further reduction.
On the other hand, the cost of vegetable oil, onions, and potatoes rose by 4%, 4%, and 1% month-on-month, respectively, preventing a steeper decline in the cost of a vegetarian thali.
“Potato arrivals declined by 27%, while onion arrivals fell by 28% in November, leading to higher prices for these staples. This limited the decrease in thali costs,” said Pushan Sharma, Director-Research at CRISIL Market Intelligence and Analytics.
Sharma added that the cost of vegetables and pulses is expected to stabilize starting December, as fresh supplies hit the market, offering some relief to consumers.
Year-On-Year Trends
On an annual basis, the cost of a home-cooked vegetarian thali rose by 7% in November, largely due to elevated prices of tomatoes and potatoes. In comparison, the cost of a non-vegetarian thali rose by just 2%, as higher broiler chicken prices offset other cost increases.
The non-vegetarian thali cost remained stable month-on-month, as a 2% rise in broiler prices was balanced by a 3% year-on-year decline in broiler costs, which constitute 50% of the non-veg thali expense.
An 11% reduction in LPG cylinder prices over the past year helped mitigate the overall increase in thali costs. The cost of a 14.2 kg LPG cylinder in Delhi dropped from ₹903 in November 2023 to ₹803 this year, preventing further escalation.
Future Outlook
CRISIL anticipates that non-vegetarian thali costs could see year-on-year growth in the coming months due to the low base effect from December 2023. Meanwhile, stabilization in vegetable and pulse prices is expected to provide relief for vegetarian thali costs.
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