Thali prices jump by up to 11% this July
The cost of thalis, a popular meal in India, has seen a significant increase due to inflation. According to CRISIL MI&A Research, the price of vegetarian thalis went up by 11%, while non-vegetarian thalis saw a 6% hike in July on a month-over-month (MoM) basis. However, an annual comparison reveals a different trend. The cost of a home-cooked vegetarian thali in July decreased by 4% year-over-year, while non-vegetarian thalis witnessed a more substantial decline of 9%.
Factors influencing the cost of thalis
Yearly reduction in veg thali costs, was due to a 40% drop in tomato prices from ₹110/kg last year. The high tomato prices in 2023, were due to flash floods disrupting supply from northern states, and pest infestations in Karnataka. However, decline in vegetarian thali's cost was offset by significant yearly increases in onion and potato prices, which rose by 65% and 55%, respectively. For non-vegetarian thalis, an estimated 11% YoY decline in broiler prices primarily drove the cost decrease.
Tomato prices surge due to adverse weather conditions
A significant portion of the increase in vegetarian thali's cost can be attributed to skyrocketing tomato prices, which surged by 55% month-on-month. This spike was primarily due to adverse weather conditions such as high temperatures affecting summer crops in Karnataka and Andhra Pradesh, and scattered rainfall leading to whitefly infestations. Other staple vegetables also saw significant price increases, with onions rising by 20% and potatoes by 16% MoM.
Factors affecting the price of staple vegetables
The rise in onion prices was linked to lower rabi production, while a late blight infestation in Punjab, Gujarat, and Uttar Pradesh adversely affected potato yields. In contrast, the cost of non-vegetarian thalis rose at a slower pace in comparison to vegetarian ones, due to stable broiler prices. These changes reflect broader impacts on household expenditures across India.
