The cost of a home-cooked meal in India increased in July, with the average vegetarian thali becoming 4% more expensive and the non-vegetarian thali witnessing a sharper 9% year-on-year rise, according to a report by Crisil.
The average cost of a vegetarian thali increased to Rs 29.1 in July, compared with Rs 28.1 in the same month last year. Meanwhile, the non-vegetarian thali rose to Rs 58.3 from Rs 53.5 during the corresponding period.
Higher onion prices were among the key factors pushing up household food costs. Onion prices increased 20% year-on-year in July as supplies of relatively expensive stored rabi onions entered the market. The situation was further tightened by unseasonal rain and hailstorms in Maharashtra during March and April, which damaged late-season crops and existing inventories.
Crisil Intelligence Director Pushan Sharma said onion prices are likely to remain firm in the coming months because of limited rabi supplies and the expected delay in kharif onion arrivals.
Cooking costs were also affected by an 11% increase in vegetable oil prices and a 10% rise in LPG cylinder prices over the year. Crisil attributed these increases largely to supply disruptions and higher energy costs associated with the West Asia conflict. Elevated crude oil prices have also increased freight and import costs, while higher polymer and resin prices are adding to packaging expenses.
However, the increase in thali prices was moderated by cheaper potatoes and tomatoes. Potato prices fell 12% year-on-year, supported by a 2-3% increase in rabi production following higher acreage. Tomato prices declined 2% as delayed summer crop planting shifted the supply cycle, resulting in increased arrivals in July.
Looking ahead, Crisil expects potato prices to firm up as costly cold-storage stocks enter the market. Tomato prices may remain stable in the near term but could rise from September due to delayed kharif arrivals and stronger festive demand.