Have Home-Cooked Thalis Become 7-8% Cheaper in August Due to Favorable Commodity Prices?

Synopsis
Key Takeaways
- Vegetarian thali prices fell by 7% in August.
- Non-vegetarian thali prices declined by 8%.
- Lower prices of onions, potatoes, and pulses drove the decrease.
- The government's import policy may help maintain low prices.
- Overall costs are reflective of a healthy agricultural output.
New Delhi, Sep 8 (NationPress) The costs associated with home-cooked vegetarian and non-vegetarian thalis experienced a notable drop of 7% and 8% respectively in August compared to the same month last year, as reported on Monday, primarily due to favorable commodity prices in India.
This reduction in the price of vegetarian thali was largely influenced by significant declines in the prices of onions, potatoes, and pulses, according to Crisil Intelligence.
Specifically, the prices of potatoes and onions fell by 31% and 37% year-on-year, respectively, attributed to a high base effect. In the corresponding period last year, potato production had decreased by 5-7% due to blight and adverse weather conditions, leading to higher prices.
This year, however, production is projected to be 3-5% higher. Similarly, a 18-20% increase in annual onion production has contributed to the drop in prices.
Furthermore, prices of pulses have seen a 14% decline year-on-year, driven by increased production and improved stock levels compared to the previous year, as highlighted in the report.
“The price drops for potatoes and onions were largely a result of high base figures, while the moderation in pulse prices is due to increased output. Nonetheless, rising tomato and vegetable oil prices have somewhat constrained the overall decrease in thali costs,” explained Pushan Sharma, Director at Crisil Intelligence.
In the short term, thali prices are expected to remain lower compared to the previous year, thanks to the favorable base rates of vegetables and pulses.
The government's recent decision to permit the free imports of yellow peas and black gram is anticipated to further reduce pulse prices, Sharma added.
The reduction in the cost of non-vegetarian thalis was chiefly due to a 10% year-on-year drop in broiler prices, which account for nearly 50% of the overall cost. The decrease in vegetable and pulse prices has also played a supportive role.
The average expense of preparing a thali at home is calculated based on the prevailing input prices across north, south, east, and west India. The monthly fluctuation reflects the impact on the typical consumer's spending.