Why Did the Cost of Home-Cooked Thalis Drop in September?

Synopsis
Key Takeaways
- Vegetarian thali prices fell by 10% in September.
- Non-vegetarian thali costs decreased by 6%.
- Vegetable prices significantly impacted overall costs.
- Rising vegetable oil prices complicate the price dynamics.
- Future onion prices may see fluctuations due to weather conditions.
New Delhi, Oct 7 (NationPress) The price of home-cooked vegetarian and non-vegetarian thalis saw a significant drop of 10 percent and 6 percent, respectively, in September compared to the same period last year, largely due to a notable decline in commodity prices, as highlighted in a report issued by Crisil on Tuesday.
The decrease in the vegetarian thali's cost can be attributed to a steep fall in the prices of vegetables and pulses. For instance, potato prices plummeted by 31 percent due to cold storage units releasing their stocks, while tomato prices decreased by 8 percent year-on-year, driven by an increase in supply, according to the report.
Onion prices experienced a remarkable decline of 46 percent year-on-year, thanks to greater rabi supplies hitting the market and a rise in domestic availability due to reduced import momentum from Bangladesh, which comprises 40 percent of India’s onion export market.
The report also noted that prices of pulses fell by 16 percent due to enhanced imports of Bengal gram, yellow pea, and black gram, which are permitted until March 2026 to ease consumer prices.
Nevertheless, the prices of vegetable oils rose by 21 percent year-on-year, influenced by increased demand at the onset of the festive season, and there was a 6 percent year-on-year increase in the cost of liquefied petroleum gas cylinders, which hindered a more substantial decrease in the overall thali costs.
The reduction in the cost of the non-vegetarian thali was less pronounced due to a marginal 1 percent year-on-year fall in the price of broiler chicken, which constitutes about 50 percent of its total cost. However, the drop in vegetable and pulse prices aided the decline.
Crisil Intelligence director Pushan Sharma commented, "Looking ahead, onion prices could experience a moderate rise in the medium term, as excess rainfall in August and September in key producing states like Karnataka and Maharashtra has delayed kharif transplantation, raising yield concerns."
"Moreover, if heavy rainfall impacts stored onions or the ongoing kharif crop in October, we might witness further upward pressure on prices," he added.
On the other hand, tomato prices are expected to strengthen during the festive season, exacerbated by yield impacts from excessive rainfall in major producing states such as Karnataka and Maharashtra, Sharma concluded.