Home-cooked thalis 7–8% cheaper in August on lower onion, potato, pulse prices: Report
The cost of home-cooked vegetarian thalis fell 7% and non-vegetarian thalis 8% year-on-year in August, driven by sharp declines in onion, potato, and pulse prices, a Crisil Intelligence report showed. Higher crop production and stable stocks eased household food expenses.
New Delhi: The price of home-cooked vegetarian and non-vegetarian thalis declined 7 per cent and 8 per cent in August (year-on-year), respectively, amid benign commodity prices in India, a report showed on Monday.
The decline in the cost of vegetarian thali was led by a sharp drop in prices of onion, potato and pulses, according to Crisil Intelligence.
Prices of potato and onion declined 31 per cent and 37 per cent on-year, respectively, on a high base. In the year-ago period, potato production had shrunk 5-7 per cent due to blight infestation and weather changes, pushing up the prices.
This year, the production is estimated to be 3-5 per cent higher. For onion, an 18-20 per cent rise in annual production has led to a fall in prices this year.
Prices of pulses declined 14 per cent on-year driven by higher production and stock levels compared with the year-ago period, the report mentioned.
“For potato and onion, the fall in prices was on a high base, while prices of pulses moderated amid higher production. However, an increase in tomato and vegetable oil prices limited the extent of the overall decline in thali costs,” said Pushan Sharma, Director, Crisil Intelligence.
In the near term, thali prices are likely to remain lower on-year, aided by the high base of vegetables and pulses.
The government’s decision to allow free imports of yellow pea and black gram is expected to exert downward pressure on pulse prices, Sharma added.
The decline in the cost of non-vegetarian thali was driven by 10 per cent on-year drop in broiler prices, which make up about 50 per cent of the cost. Lower vegetable and pulses prices also supported.
The average cost of preparing a thali at home is calculated based on input prices prevailing in north, south, east and west India. The monthly change reflects the impact on the common man’s expenditure.
