In a recent report by CRISIL MI&A Research, it was revealed that the on-year cost of a representative, home-cooked vegetarian thali surged by seven per cent in March 2024, while the non-vegetarian thali witnessed a decline of seven per cent during the same period.
The increase in the cost of the vegetarian thali was primarily attributed to significant spikes in prices of key vegetables such as onion, tomato, and potato. Prices soared by 40 per cent, 36 per cent, and 22 per cent on-year, respectively. This surge was fueled by lower arrivals of onion and potato, coupled with a low base from the last fiscal year for tomatoes, according to Crisil.
Conversely, the decrease in the cost of the non-vegetarian thali was driven by a notable 16 per cent on-year fall in broiler prices, attributed to a high base from the previous fiscal year.
Despite the on-year trends, on-month data showed a different scenario, with the cost of the vegetarian thali declining by 1 per cent, while the non-vegetarian thali witnessed a 2 per cent rise. Factors contributing to this included a 2 per cent decline in tomato prices for the vegetarian thali, while potato prices rose by 6 per cent due to crop damage, preventing a further decline.
The rise in the cost of the non-vegetarian thali on-month was attributed to a 5 per cent increase in broiler prices, driven by higher demand during Ramadan and rising feed costs.
Pushan Sharma, Director-Research at CRISIL Market Intelligence and Analytics, highlighted the divergence in the cost of vegetarian and non-vegetarian food plates over the past five months, with the latter becoming cheaper amidst falling broiler chicken prices.
The report also provided insights into the average cost of preparing a thali at home, emphasizing the impact on the common man’s expenditure. It outlined the ingredients driving changes in thali costs, including cereals, pulses, broilers, vegetables, spices, edible oil, and cooking gas.
With headline inflation easing from 5.7 per cent in December to 5.1 per cent in January and February, households, particularly those with male agricultural workers in rural areas, are facing budgetary constraints. As per RBI data, if two earning members in a household rely on agricultural wages, 70 per cent of their income will go towards preparing the vegetarian thali, necessitating compromises on other essential expenses.
