Veg, non-veg thalis became cheaper in India last month
What's the story
The cost of home-cooked vegetarian and non-vegetarian thalis in India dropped significantly in October, a new report from Crisil Market Intelligence & Analytics has revealed. The decline was 17% for vegetarian and 12% for non-vegetarian thalis. The steep drop was mainly driven by a sharp fall in the prices of onions, potatoes, and pulses.
Price drop
Onion, tomato, potato prices plummeted
The major contributor to the fall in vegetarian thali prices was a drastic reduction in vegetable costs. Onion prices plummeted by 51% year-on-year as traders rushed to clear old rabi stock ahead of new kharif arrivals in November. Tomatoes also witnessed a 40% decline due to steady supplies from western and southern India, while potato prices fell by 31% on improved rabi production.
Cost factors
Pulses also saw a price drop
Pulses, a staple in most Indian meals, also saw a 17% price drop. This was due to a nine-fold increase in Bengal gram imports last fiscal year and an 85% rise for yellow pea and 31% for black gram. Non-vegetarian thali costs were mainly affected by broiler chicken prices which fell by 4% month-on-month due to oversupply.
Price offset
LPG, edible oil prices offset savings
Despite the significant drop in vegetarian thali prices, the month-on-month decline was only 1%. This is because edible oil prices rose by 11% year-on-year due to strong festive season demand, while LPG cylinder prices increased by 6%. These two factors offset some of the savings from cheaper vegetables and pulses.
Cost impact
Non-vegetarian thalis saw a slight decline
Non-vegetarian thalis saw a 3% decline from September levels, thanks to a 4% drop in broiler chicken prices amid oversupply. "Broilers account for nearly half of the thali cost. Lower vegetable and pulse prices helped bring down the overall price," CRISIL noted in its report.