Making a Veg Thali at Home Has Become 20% Costlier in One Year: CRISIL Report

As vegetable prices surge across India, the cost of preparing a home-cooked vegetarian meal, or “veg thali,” has jumped significantly. According to CRISIL’s Roti Rice Rate (RRR) report for October 2024, preparing a veg thali now costs 20% more than it did a year ago.

The report details how fluctuations in vegetable and ingredient prices have raised the cost of basic meals in Indian households, even as some costs like fuel have dipped.

Rising Vegetable Prices as a Key Cost Driver

One of the main contributors to the rising cost of a veg thali is the surge in vegetable prices. According to the CRISIL report, vegetables constitute 40% of the overall cost of a vegetarian thali.

In October 2024, onion prices were up by 46% and potatoes by 51% compared to October 2023, while tomatoes saw a staggering price increase, more than doubling from ₹29 per kilogram to ₹64 per kilogram.

This escalation in prices stems primarily from adverse weather conditions, specifically the intense rains in September, which damaged crops across major agricultural states like Maharashtra, Karnataka, and Andhra Pradesh.

Read : Jacqueline Fernandez, Riteish Deshmukh Named India’s ‘Most Beautiful Vegetarian Celebrities’

Due to this rise in vegetable costs, households have been compelled to pay substantially more for their daily meals. The price hike has not only impacted those preparing food at home but also influenced restaurant menus and food vendors who rely heavily on these staples.

Read : Why People Are Trolling Deepinder Goyal For Launching “Pure Veg Fleet” ???

While vegetable costs in general have spiked, tomatoes, onions, and potatoes—essential components in Indian cooking—have borne the brunt of the price increases, making it even more challenging for families to manage their grocery budgets.

Additional Ingredient Price Increases

While vegetable prices have had the most significant impact, other essential components have also seen an increase. Pulses, another staple in the Indian diet and a primary protein source for vegetarians, became 11% costlier in October compared to the previous year.

Pulses account for 9% of the cost of a veg thali, and the price increase is attributed to lower stock levels and heightened festive demand. Limited availability of pulses has also tightened the supply chain, further driving up prices.

Vegetable oil, another essential ingredient in Indian cooking, rose by 10% in October 2024 compared to the previous month. The price surge is due to an increase in import duties on oils, combined with high festive season demand.

While vegetable oil is a relatively smaller component of the overall thali cost, accounting for only a portion of the expense, the combined increases across all ingredients have led to a notable rise in total meal costs.

Impact of Fuel and Broiler Price Trends on Non-Veg Thalis

Interestingly, while the cost of a non-vegetarian thali also rose over the past year, the increase was significantly lower than that of a vegetarian meal. The CRISIL report shows a 5% increase in the cost of a non-veg thali compared to the previous year, with vegetable costs (22% of the total non-veg thali cost) overshadowing the decline in broiler prices.

Broiler prices, which account for half of the cost of a non-veg thali, have actually decreased by 9% over the past 12 months. Despite the lower meat costs, the rise in vegetable prices continues to elevate the overall cost of a non-veg thali as well.

Fuel prices also affect the thali cost, albeit indirectly. Despite an 11% drop in LPG cylinder prices in Delhi since September last year, the impact of reduced fuel costs has been relatively minimal compared to the upward pressure from food ingredients.

However, any future changes in fuel costs could alter the cost structure of both veg and non-veg meals, as transportation expenses are integral to the pricing of agricultural goods.

Regional Price Variations and Future Price Trends

CRISIL’s thali cost calculations are based on input prices from regions across India, including the north, south, east, and west, to account for variations in pricing based on regional agricultural conditions and distribution costs. These price disparities are important for understanding how meal costs fluctuate based on location.

For example, while tomato prices surged by 39% compared to the previous month, other regions might see different rates of increase depending on local supply and demand.

The report indicates that vegetable prices may stabilize in November 2024, as fresh supplies are expected from Madhya Pradesh, Rajasthan, and Himachal Pradesh. Additionally, the upcoming crop season may bring in new stocks of pulses, which could ease prices starting in December.

However, factors such as weather patterns and government policy decisions on import duties will continue to play a crucial role in determining how prices evolve over the coming months.

The cost increases observed in both veg and non-veg thalis underscore the growing challenges Indian households face in maintaining affordable meal preparation. While CRISIL expects some price stabilization with incoming crops, persistent high costs of essential ingredients like vegetables, pulses, and edible oils may continue to pressure household budgets.

With festival season demand playing a role and the possibility of further weather disruptions, the future of food prices in India remains uncertain.

In response to these rising costs, households may need to adapt by seeking alternative ingredients or relying on government-subsidized options where available. However, for many families across the country, managing meal costs has become an increasingly complex challenge.

The recent CRISIL report provides crucial insights into these trends, shedding light on the need for strategic planning to ensure affordability and accessibility of essential foods for all.