Synopsis
According to a Crisil report, the cost of home-cooked vegetarian and non-vegetarian thalis decreased by 5% in February. The decrease is attributed to lower vegetable and chicken prices, while upcoming rabi crops may maintain this trend, despite potential impacts from March's high temperatures.Key Takeaways
- 5% decline in home-cooked thali costs in February.
- Vegetable prices, especially onions and potatoes, drove down vegetarian thali costs.
- Broiler chicken prices decreased, easing non-vegetarian thali costs.
- Fresh rabi crops expected to keep vegetable prices stable.
- RBI cuts policy rate to support economic growth amidst inflation decline.
New Delhi, March 10 (NationPress) The expense of making both vegetarian and non-vegetarian thalis at home saw a 5% decline in February, as per a report by Crisil published on Monday. For the vegetarian thali, the decrease was attributed to lower prices of vegetables, especially onions, tomatoes, and potatoes. In contrast, the cost of a non-vegetarian thali fell due to a drop in prices of broiler chicken, the report indicated.
Looking ahead, the influx of fresh rabi crops is anticipated to maintain low vegetable prices, providing ongoing relief for the costs associated with vegetarian thalis.
Nevertheless, the warmer temperatures in March could affect the shelf life and quality of onions, which are meant to be stored for the next six months, as well as the availability and quality of wheat, the primary crop of the rabi season, according to the report.
The average cost of crafting a thali at home is based on current input prices across north, south, east, and west India. Monthly variations reflect the effects on the typical consumer's spending. The data also highlights the ingredients (such as cereals, pulses, broilers, vegetables, spices, edible oil, and cooking gas) that contribute to the changes in thali costs.
The ICRA report aligns with official statistics showing that India’s retail inflation is decreasing. Inflation, as measured by the Consumer Price Index, dropped to a 5-month low of 4.31% in January, as prices of vegetables and pulses went down, providing relief to household budgets, according to data released by the Ministry of Statistics.
The reduction in inflation illustrates a consistent downward trend after peaking at a 14-month high of 6.21% in October. CPI inflation decreased to 5.48% in November and 5.22% in December.
Food inflation reached 6.02% in January 2025, marking the lowest rate since August 2024.
RBI Governor Sanjay Malhotra announced a 25 basis point cut in the policy rate, lowering it from 6.5% to 6.25% during the monetary policy review, intending to boost growth amidst global uncertainties.
He noted that inflation has decreased and is likely to continue moderating, gradually aligning with the RBI’s target.
With retail inflation on its downward path, the RBI is expected to have increased flexibility to adopt a soft monetary policy, facilitating more credit access for businesses and consumers, which will stimulate economic growth.
