The cost of a vegetarian thali increased in April 2024 due to significant rises in the prices of key ingredients such as tomatoes, potatoes, and onions, which saw year-on-year increases of 39%, 41%, and 43% respectively. This surge is largely attributed to the low base of the previous fiscal year, according to Crisil.
CRISIL M&A Research reported a 9% year-on-year rise in the cost of a representative home-cooked vegetarian thali, while the cost of a non-vegetarian thali decreased by 7% in the same period.
The hike in the veg thali price is driven by a considerable drop in the rabi onion crop acreage and the adverse effects of late blight and crop damage on potato yields in West Bengal. Additionally, rice prices, which constitute 13% of the veg thali cost, rose by 13% year-on-year due to reduced acreage and subdued arrivals. Pulse prices, making up 9% of the veg thali cost, increased by 21% year-on-year, impacted by lower reservoir levels affecting production.
Conversely, the prices of cumin, chili, and vegetable oil fell by 37%, 25%, and 8% respectively, mitigating a steeper increase in the veg thali cost. The non-veg thali cost reduction is attributed to a 16% drop in broiler prices year-on-year, despite a high base from the previous fiscal.
Month-on-month, the veg thali price rose slightly by 1% due to a 9% increase in potato prices, while other major components remained stable. The non-veg thali cost decreased by 1% as broiler prices, accounting for 50% of the cost, fell by an estimated 2%.
The average cost of preparing a thali at home is derived from input prices across north, south, east, and west India, reflecting the impact on household expenditure. The data highlights how various ingredients like cereals, pulses, broilers, vegetables, spices, edible oil, and cooking gas drive changes in the thali’s cost.
A veg thali typically includes roti, vegetables (onion, tomato, and potato), rice, dal, curd, and salad. The non-veg thali consists of the same items, substituting dal with chicken.
India’s retail inflation rate, measured by the Consumer Price Index (CPI), was 4.83% in April 2024, slightly down from 4.85% in March 2024. The RBI’s Monetary Policy Committee (MPC) is set to announce the new monetary policy on Friday.
According to RBI data, male agricultural workers in rural areas earned an average daily wage of Rs 323.2 in 2022. Assuming 20 working days in a month, a two-person household would earn about Rs 13,000 monthly. If two members are working, 70% of their wages would be spent on preparing vegetarian thalis (for both lunch and dinner) for the month. The remaining 30% would need to cover education, health, clothing, travel, and energy expenses, forcing households to compromise on meal quality and overall food expenses to maintain the family budget.
