Cooking a vegetarian meal at home became significantly more expensive in October, with the cost of a typical veg thali rising 12% year-on-year, driven by a sharp increase in onion prices and higher costs of tomatoes, rice, vegetable oil and LPG.
The non-vegetarian food basket also became costlier, but at a slower pace, with the cost of a non-veg thali increasing 9% year-on-year. However, it offered some relief on a monthly basis, with costs easing 1% in October compared with September.
According to Crisil's monthly Roti Rice Rate report, the average cost of preparing a vegetarian thali increased to Rs 31.2 in October from Rs 27.8 in the same month last year. The non-vegetarian thali cost Rs 59.2, compared with Rs 54.4 a year ago.
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On a month-on-month basis, the vegetarian thali became 1% more expensive, while the non-vegetarian thali recorded a 1% decline in cost, the report said.
Five Key Factors Behind The Rise In Veg Thali Costs
1. Onion Prices More Than Double
Onion emerged as one of the biggest contributors to the increase in vegetarian meal costs. Prices more than doubled year-on-year to Rs 53 per kg in October. Crisil attributed the surge to a 5-6% decline in rabi production, depleted inventories and delays in kharif arrivals, which generally begin in October.
2. Tomato Prices Climb On Delayed Arrivals
Tomato prices increased 6% year-on-year, as supplies from key producing regions in southern and western India were delayed. Festive demand added to the pressure, keeping prices elevated, the report said.
3. Rice Gets Costlier Amid Lower Arrivals
Rice prices rose 10% year-on-year in October. Arrivals during the month fell 40% due to delayed harvesting. Market speculation over the availability of fine and super-fine rice varieties also contributed to the increase, according to Crisil.
4. Vegetable Oil Prices Rise 13%
Vegetable oil prices increased 13% year-on-year. Geopolitical uncertainty and concerns over the potential impact of El Nino conditions on palm oil production supported the rise, the report said.
5. LPG Adds To Household Cooking Costs
Higher LPG prices also contributed to the increase in the overall cost of preparing a vegetarian meal, adding to the pressure on household food budgets.
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Why Did The Non-Veg Thali Become Cheaper?
Despite a 9% year-on-year increase in the cost of a non-vegetarian thali, the basket became cheaper on a monthly basis in October.
Crisil attributed the moderation primarily to broiler prices, which account for nearly half the total cost of a non-vegetarian meal. Broiler prices declined 2% month-on-month amid weaker demand during the festive period.
The decline more than offset the increase in the prices of other ingredients, bringing down the overall cost of a non-vegetarian thali by 1% compared with September, the report said.
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