In October, the price of a thali decreased due to the declining costs of tomatoes and potatoes, contributing to greater affordability in food, as per the most recent report from Crisil.
The cost of a vegetarian thali dropped by 5% compared to the previous year and 1% sequentially, while non-vegetarian thali prices reached their lowest point in more than a year.
“The cost of non-veg thali declined faster as the price of broiler (~50% share in the thali cost) softened an estimated 5-7% on-year on a high base,” said Crisil.
In October, a vegetarian thali was available at a price of INR 27.5, while a non-vegetarian thali cost INR 58.4.
Tomato prices saw a 38% reduction in October compared to the same period last year, while potato prices dropped by 21%.
Fuel expenses were also reduced due to the government’s decision to provide a subsidy on LPG cylinders. The price of an LPG cylinder has now decreased to INR 903 from its previous rate of INR 1,053.
Nevertheless, Crisil anticipates a potential price increase in November, especially if onions, constituting 10% of the thali cost, experience a surge in prices. During the first week of November, onion prices were 75% higher compared to the previous month.
During October, onion prices acted as a deterrent, preventing thali prices from experiencing a more significant decrease.
“Further decline in thali prices was capped by a rise in onion prices in the second half of the month to INR 40/kg on average from INR 34/kg in the first half, trading 25% higher on-year in the second half owing to a lower kharif output estimated in 2023,” it stated.