Thali costs drop 13% on-year, led by benign input prices: Report

Veg thali cost dips 13% on-year; non-veg thali also cheaper as vegetable, pulse, and broiler prices cool

Home-cooked vegetarian and non-vegetarian thalis turned markedly cheaper in November compared to a year ago, with their average cost easing 13 per cent on the back of a broad-based easing in food prices, the latest edition of the Roti Rice Rate report released by credit rating agency Crisil on Monday noted.

 

The correction was led by a steep fall in the prices of vegetables and pulses, with higher stocks and robust imports helping cool the market. The cost of a non-vegetarian thali fell due to a 12 per cent on-year drop in broiler prices, which accounts for about 50 per cent of the cost.

 

“Prices of tomato declined 17 per cent on-year on the back of higher supplies, while potato prices fell 29 per cent on-year on a high base. Onion prices declined 53 per cent on-year due to the availability of higher stock, while the prices of pulses declined 17 per cent because of increased stocks in the current fiscal led by high imports of Bengal gram, yellow pea and black gram,” the report added.

 

The rating agency calculates the average cost of preparing a thali at home based on the input prices prevailing from all corners of the country. The monthly change reflects the impact on the common man’s expenditure. The data also reveals the ingredients (cereals, pulses, broilers, vegetables, spices, edible oil and cooking gas) driving the change in the cost of the thali.

 

Sequentially, the cost of preparing a home-cooked vegetarian thali rose to Rs 28.4 in November from Rs 27.8 in October, even as the non-vegetarian thali became cheaper at Rs 53.8 to hit a four-month low in November from Rs 54.4 a month ago.

 

The uptick in the vegetarian thali cost on a monthly basis was driven mainly by higher tomato and potato prices, while an estimated 5 per cent month-on-month fall in broiler prices dragged down the cost of the non-vegetarian thali.

 

“Month-on-month, the cost of a vegetarian thali rose 2 per cent, while that of a non-vegetarian thali dipped 1 per cent in November. Potato and tomato prices rose 5 per cent and 14 per cent, respectively, leading to a rise in the overall cost of thalis, while the prices of other major commodities remained largely stable,” the report added.

 

Pushan Sharma, director, research at Crisil Intelligence, said that going ahead, onion prices are expected to firm up because of delayed kharif harvesting and lower yields, while potato prices are likely to moderate further as cold-storage stocks are released into the market. “Prices of pulses are expected to remain range-bound in the near term, shaped by two key factors: first, the 30 per cent import duty on yellow pea, which lends upside support, and second, unrestricted imports of black gram, which limit steep price increases. Any additional policy intervention such as extending or raising import duties could exert more upward pressure on prices of pulses,” he added.