Food prices are a crucial factor in our daily lives, impacting both our budgets and our ability to access essential sustenance. Understanding food price trends is essential for making informed decisions. In September 2024, Crisil’s monthly report revealed a fascinating contrast: a significant rise in vegetarian thali costs coupled with a decline in non-vegetarian thali prices.
The report highlighted that the vegetarian thali cost jumped by around 11% year-on-year, driven primarily by a surge in vegetable prices. These key ingredients, which account for 37% of the thali cost, experienced a significant increase, with onion, potato, and tomato prices rising by 53%, 50%, and 18% respectively. This surge in vegetable prices was attributed to supply chain disruptions caused by heavy rainfall in key producing states like Andhra Pradesh and Maharashtra, leading to lower crop yields.
The impact of the reduced production was particularly pronounced for pulses, which account for 9% of the vegetarian thali cost. A 14% increase in pulse prices, fueled by a drop in production last year and lower opening stocks this year, further contributed to the rise in vegetarian thali costs.
However, the non-vegetarian thali story was quite different. Despite typically costing twice as much as its vegetarian counterpart, the non-vegetarian thali became slightly cheaper in September, down by around 2% year-on-year. This decline was attributed to a 13% decrease in broiler chicken prices. This downward trend in chicken prices highlights the dynamic nature of food markets, where prices can fluctuate based on factors like supply and demand, weather conditions, and global commodity prices.
The report also shed light on the impact of fuel prices on food costs. While a 11% drop in fuel costs, from ₹903 for a 14.2 kg LPG cylinder in Delhi in September 2023 to ₹803 in March 2024, helped to prevent further increases in thali costs, it’s important to note that fuel prices are still a major contributing factor to overall food prices, especially considering their impact on transportation and logistics.
Overall, the Crisil report provides valuable insights into the complex factors shaping food prices in India. The report highlights the importance of monitoring these trends and understanding the underlying dynamics to make informed decisions about household budgets and food choices. As we navigate a global food system that is increasingly interconnected and subject to external influences, these monthly reports provide valuable data points for consumers, policymakers, and industry stakeholders alike.
