The cost of preparing a vegetarian thali in India increased significantly in July, rising by 11% compared to the previous month, according to a report by rating agency Crisil. The surge in prices was primarily attributed to a sharp rise in vegetable prices, particularly tomatoes. The price of tomatoes soared by 55% on-month, climbing from approximately ₹ 42 per kg in June to around ₹ 66 per kg in July. This surge was primarily driven by a reduction in supply due to scanty rainfall across the country for the second consecutive year. The heatwave experienced during May also impacted tomato crops in key producing states like Andhra Pradesh and Karnataka. The price of tomatoes has been a major concern, with prices reaching ₹ 80-100 per kg in the last month. Government intervention was required, and the union government launched a subsidy initiative to sell tomatoes at a subsidized price of ₹ 60 per kg in some regions in July. The cost of a non-vegetarian thali also increased in July, rising by 6% compared to the previous month. However, this increase was less pronounced compared to the vegetarian thali due to the stable price of broiler chickens, which constitute a significant portion of the non-vegetarian thali’s cost. The rise in prices of other ingredients, including onions and potatoes, which saw an increase of 20% and 16% respectively, also contributed to the higher cost of the non-vegetarian thali. Despite the increase in prices, the cost of both vegetarian and non-vegetarian meals in July was marginally lower compared to the same period last year. This was primarily due to a decrease in the price of broiler meat compared to the year-ago period. The rising cost of home-cooked meals underscores the impact of food price inflation in India. Food inflation rose by 8.4% year-on-year in June, a significant increase from the 7.9% rise observed in May. The Reserve Bank of India (RBI) attributed this surge to increases in prices of cereals, milk and products, fruits, sugar, and prepared meals. The RBI’s ‘State of the Economy’ report in July highlighted the concerning trend of double-digit increases in vegetable prices compared to the year-ago period. The report stated that food prices are significantly influencing headline inflation and household inflation expectations, raising concerns about potential spillovers to wages, rents, and overall inflation expectations.
