Household thali cost eases on decline in tomato prices in August

Of the 24% rise in the vegetarian thali cost, 21% can be attributed solely to the price of tomato, which rose 176% YoY to Rs 102 per kg in August 2023 as compared to Rs 37 per kg in the same month last year.

The average cost of a household thali in India declined marginally in August when compared with the previous month primarily due to a sharp drop in tomato prices, data compiled by rating agency CRISIL showed.

The cost of preparing a vegetarian thali at home eased to Rs 33.8 in August from Rs 34 in July, while for non-vegetarian thali it declined marginally to Rs 67.3 in August from Rs 67.6 in the previous month.

On a year-on-year (YoY) basis the costs surged sharply in both the categories. The cost of a vegetarian thali in August was 24 per cent higher when compared with the same month last year. In August 2022 it stood at Rs 27.2. The cost of a non-vegetarian thali rose from Rs 59.8 in August 2022 to Rs 67.3 in August 2023, posting a year-on-year increase of 13 per cent.

Of the 24 per cent rise in the vegetarian thali cost, 21 per cent can be attributed solely to the price of tomato, which rose 176 per cent YoY to Rs 102 per kg in August 2023 as compared to Rs 37 per kg in the same month last year.

After hitting a record high of around Rs 250 per kg in late July and early August, tomato prices have fallen to around Rs 50 per kg.

On future trends, the rating agency noted that the costs could see some pull back in September as tomato retail price has halved month-on-month to Rs 51 per kg. Also, the cost of a 14.2 kg LPG cylinder, which was Rs 1,103 in August in Delhi has been brought down to Rs 903 per cylinder from September. This will also come as a relief for consumers.

For the purpose of standardisation, the agency has assumed that a veg thali comprises roti, vegetables (onion, tomato, and potato), rice, dal, curd, and salad. For a non-vegetarian thali, chicken has been considered instead of dal.

Despite the marginal decline, the cost of food remained close to record high in August as most items registered YoY increase in prices. The prices of onion rose 8 per cent, chili 20 per cent and cumin 158 per cent on a year-on-year basis in August, accounting for 1 per cent increase in the cost of vegetarian thali during the month.

For non-vegetarian thali, the cost increase was slower as the price of broilers, which form more than 50 per cent of the cost, is estimated to have risen a moderate 1-3 per cent YoY.

However, a 17 per cent on-year decline in the price of vegetable oil and 14% in potato cushioned the cost of both the thalis to some extent.