In a recent report, CRISIL’s monthly indicator of food price trends revealed a significant surge in the cost of a vegetarian thali in India during July. The prices of key ingredients, particularly tomatoes, played a pivotal role in driving up the overall cost of this staple meal. This article delves into the details of the price increase and its implications for the common person’s expenditure.
The Tomato Factor
The data unveiled by CRISIL showcases an astonishing 34% rise in the price of a vegetarian thali in July as compared to the previous month of June. An intriguing finding is that a quarter of this increase can be directly attributed to the inflationary pressure exerted by tomatoes. The cost of tomatoes skyrocketed from Rs 33 per kilogram in June to a staggering Rs 110 per kilogram in July, marking an alarming 233% surge within a single month.
Sequential Price Hikes
This recent uptick in the cost of a vegetarian thali marks the third consecutive monthly increase. Moreover, this year’s data presents a unique circumstance, as it is the first instance of a year-on-year rise in thali prices for the 2023-24 period.
Non-Vegetarian Thali Impact
While the increase in the cost of a vegetarian thali is striking, the non-vegetarian thali also experienced a rise in prices. However, the uptick for the non-vegetarian counterpart was comparatively modest, with a 13% month-on-month increase.
Influencing Factors
CRISIL’s methodology involves calculating the average cost of preparing a thali at home, taking into account input prices prevailing in different regions of India. The data analysis provides insights into the specific ingredients contributing to changes in thali costs. These ingredients include cereals, pulses, broilers (in the case of non-vegetarian thali), vegetables, spices, edible oil, and cooking gas.
Key Ingredients and Their Impact
Apart from tomatoes, other ingredients also played a role in driving up the cost of a vegetarian thali. The prices of onions and potatoes increased by 16% and 9% month-on-month, respectively. These increases, combined with the tomato inflation, further contributed to the overall rise in thali prices.
Conclusion
The sharp increase in the cost of a vegetarian thali, particularly due to the unprecedented rise in tomato prices, raises concerns about the affordability of staple meals for the common person. CRISIL’s monthly indicator sheds light on the complex interplay of factors influencing food prices and their implications for households across India. As consumers and policymakers grapple with these challenges, understanding the dynamics behind such price fluctuations becomes crucial for ensuring food security and managing inflationary pressures.
