Tomato, Onion, Potato Price Hikes Lead to Higher Veg Thali Costs in July: CRISIL Report

The cost of home-cooked veg thali spiked month-on-month in July as prices of tomato, onion and potato surged on lower arrivals due to inclement weather. However, stable broiler prices arrested an increase in the cost of non-veg thali, says a CRISIL report. The data also reveals the ingredients (cereals, pulses, broilers, vegetables, spices, edible oil and cooking gas) driving the change in the cost of the thali.

On-month, the cost of both veg and non-veg thalis increased 11% and 6%, respectively, as per CRISIL MI&A Research estimates. 7% out of the 11% rise in the cost of the veg thali can be attributed to only tomato prices, which have zoomed 55% on-month from ~ Rs 42 per kg in June to ~ Rs 66 per kg in July.

This was mainly due to high temperatures impacting the summer crop in key states of Karnataka and Andhra Pradesh; additionally, scattered rainfall in May in Karnataka escalated whitefly infestations, thereby impacting the crop output

Price of onion and potato rose 20% and 16% on-month, respectively, further contributing to the higher cost of the veg thali. While lower rabi production impacted onion prices, late blight infestation in Punjab, Gujarat and Uttar Pradesh affected the potato output.

Cost of the non-veg thali rose at a slower pace compared with the veg thali since the price of broiler, comprising more than 50% of the total, is estimated to have remained stable. On-year, however, the cost of a representative home-cooked veg thali declined 4% in July, while that of the non-veg thali decreased 9%.

The cost of a veg thali declined due to a 40% drop in tomato prices on the high base of the previous fiscal. Prices had touched Rs 110 per kg in July 2023, affected by flash floods that hit supply from northern states while pest infestation impacted the output from Karnataka.

A 65% and 55% on-year increase in the prices of onion and potato arrested a further decline in the thali’s cost amid lower arrivals. For the non-veg thali, the cost decrease was due to an estimated ~11% on-year decline in broiler prices on the high base of fiscal 2024.