Reduced tomato prices in September led to a decrease in the expenses associated with both vegetarian and non-vegetarian thalis, offering a welcome respite to consumers who were grappling with the challenges posed by rising costs.
In September, the price of a vegetarian thali dropped by 17% compared to the previous month. This significant reduction can be largely attributed to the substantial 62% month-on-month decrease in tomato prices, which fell from INR 102 per kg in August to just INR 39 per kg in September 2023, as reported by Crisil’s monthly indicator of food plate costs, the Roti Rice Rate.
Onion prices experienced a 12% month-on-month rise in September. Projections from the ratings agency suggest that these prices are likely to remain high due to the expected decrease in output during the kharif season of 2023.
The price of a non-vegetarian thali saw a 9% month-on-month decrease, primarily attributed to an estimated 2-3% month-on-month increase in broiler prices, which constitute over 50% of the total thali cost.
According to the most recent data, the Consumer Price Index (CPI) indicated a reduction in retail inflation during August due to a decline in food prices. However, it remained higher than the Reserve Bank of India’s (RBI) comfort level. In August, retail inflation increased by 6.8% annually, showing a slowdown from the 15-month high of 7.4% observed in July, providing some relief. Food inflation also decreased from 11.5% in July to 9.9% in August. Rural areas experienced a higher inflation rate at 7%, while urban areas recorded 6.6%.
The expenditure on fuel, constituting 14% of the total cost of vegetarian thalis and 8% of non-vegetarian thalis, experienced a significant 18% month-on-month decrease in September. This decline was driven by the reduced cost of a 14.2 kg cooking gas cylinder, which dropped from INR 1,103 to INR 903.
Chillies, which saw a substantial 31% month-on-month decrease, also contributed to a reduction in thali costs. The calculation of the average cost of preparing a thali at home considers input prices across various regions of India—north, south, east, and west. The monthly alterations reflect the impact on the ordinary individual’s spending. The data additionally reveals the key ingredients, such as cereals, pulses, broilers, vegetables, spices, edible oil, and cooking gas, that influence variations in the thali’s cost.