In August 2024, the cost of preparing both veg and non-veg thalis at home saw a noticeable decline, driven primarily by falling prices of key ingredients, such as tomatoes and broilers, according to the latest CRISIL Market Intelligence & Analytics Research.
The average cost of a home-cooked veg thali dropped by 8% year-on-year, while a non-veg thali saw a decrease of 12% year-on-year. This reduction reflects a fall in prices of several crucial components. Tomatoes, which make up approximately 14% of the veg thali cost, experienced a price drop of 51% year-on-year, falling from Rs 102 per kg in August 2023 to Rs 50 per kg in August 2024. This decline is attributed to increased supply from southern and western states.
Further contributing to the lower costs, the price of a 14.2 kg LPG cylinder in Delhi fell by 27% year-on-year, dropping to Rs 803 from Rs 1,103. Prices of vegetable oil, chili, and cumin—collectively representing less than 5% of the veg thali cost—decreased by 6%, 30%, and 58% year-on-year, respectively.
The reduction in the cost of a non-veg thali was more pronounced due to a 13% year-on-year decrease in broiler chicken prices, which constitute about 50% of the non-veg thali expense. However, the impact was somewhat moderated by an increase in the retail prices of onions and potatoes, which rose by Rs 15 per kg and Rs 13 per kg, respectively, due to lower rabi arrivals.
On a month-on-month basis, both veg and non-veg thalis saw a decrease, with costs falling 4% and 3%, respectively. This monthly decline was largely driven by a 23% drop in tomato prices, from Rs 66 per kg in July 2024 to Rs 50 per kg in August 2024. For non-veg thalis, the decline was supported by a 1-3% reduction in broiler prices, influenced by reduced consumption during the Shravan month. Nevertheless, the overall reduction was limited by a 2% rise in potato prices and a 3% increase in onion prices, compared to the previous month.
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