Cost of home-cooked thalis declines in April as food prices cool

Vegetarian and non-vegetarian thalis became cheaper in April due to lower prices of onion, potato and broiler, although oil and LPG costs curtailed a deeper drop

Home-cooked meals became cheaper in April, as the cost of both non-vegetarian and vegetarian thalis cooled during the month, according to the latest report released by credit rating agency Crisil on Wednesday.

 

The price of a vegetarian thali declined month-on-month by nearly 1.2 per cent to Rs 26.3 in April from Rs 26.6 in March, owing to a fall in the prices of onion (14 per cent) and potato (2 per cent). The price of tomato (1 per cent), however, rose slightly during the month.

 

Similarly, the price of a non-vegetarian thali declined month-on-month by nearly 2 per cent to Rs 53.9 in April from Rs 54.8 in March, due to a drop in broiler prices amid lower demand caused by bird flu concerns in southern India.

 

 

This comes amid expectations of a further decline in India’s consumer price index (CPI)-based retail inflation in April, due to easing prices across various goods categories, especially food items. In March, retail inflation had fallen to a nearly six-year low of 3.34 per cent.

 

Meanwhile, on a year-on-year basis, the report showed that non-vegetarian thali prices declined 4.3 per cent due to an estimated 4 per cent fall in broiler prices, which comprise nearly 50 per cent of a non-vegetarian thali’s cost. The dip in broiler prices was attributed to oversupply and weak demand amid bird flu reported in Maharashtra, Andhra Pradesh, Telangana and Karnataka.

 

On the other hand, the price of a vegetarian thali declined by nearly 4 per cent year-on-year due to a sharp drop in tomato and potato prices.

 

“A 19 per cent on-year jump in vegetable oil prices due to a rise in import duty and a 6 per cent on-year rise in LPG cylinder prices curtailed a further decline in the cost of both thalis,” the report noted.

 

Pushan Sharma, director–research, Crisil Intelligence, said that going ahead, wheat and pulse prices are expected to moderate amid strong domestic output, and edible oil prices are also likely to soften over the next two to three months as global supplies pick up, mainly from Argentina, Indonesia and Malaysia.

 

“Rice prices, though, are expected to inch up with a projected increase in exports. And among vegetables, onion prices are likely to be rangebound, while tomato prices are forecast to rise on account of seasonality,” he added.

 

Crisil calculates the average cost of preparing a thali at home based on input prices prevailing in north, south, east and west India. The monthly change reflects the impact on household expenditure. The data also reveals the ingredients—cereals, pulses, broilers, vegetables, spices, edible oil and cooking gas—driving the change in thali cost.