Why home-cooked meals have become costlier in India
What's the story
The cost of home-cooked meals in India skyrocketed in December, owing to the increasing prices of essential kitchen ingredients such as tomatoes and potatoes. According to a recent report by CRISIL, the average cost of preparing a vegetarian thali increased by 6% to ₹31.6 per plate last month, as opposed to ₹29.7 during the same period last year. However, the price is marginally lower than November's ₹32.7 per plate.
Price hike
Non-vegetarian meals see steeper price increase
The report also noted a sharper price rise for non-vegetarian meals. The price of a non-vegetarian thali increased 12% year-on-year and 3% month-on-month to ₹63.3 in December. This spike was mainly due to a 20% rise in the cost of broiler chicken, which constitutes half of the total meal costs.
Cost drivers
Tomato, potato prices soar amid import duty hikes
The report highlighted a number of reasons for the rising cost of food. Tomato prices increased by 24% to ₹47 per kg in December, while potatoes witnessed an even sharper increase of 50% to ₹36 per kg. The cost of vegetable oil also increased by 16% YoY due to increased import duty by the government. These price hikes have greatly affected the common man's food expenditure.
Price fluctuations
LPG fuel rates drop, broiler prices surge
From a YoY perspective, an 11% drop in LPG fuel rates cushioned some of the blow from these higher costs. However, a spike in broiler prices due to cold wave-triggered dip in production and higher festive and wedding demand pushed up non-veg thali cost by 3% last month. The report also noted that elevated feed costs contributed to this price increase.