Food flip: Veg thali pockets feel the pinch, non-veg thali wins the price game

The cost of home-cooked vegetarian thalis has been on the rise since November 2023, with a notable 10 percent year-on-year increase in June 2024, according to a report released on Friday. In contrast, the cost of non-vegetarian thalis has declined by 4 percent over the same period.

The spike in the cost of vegetarian thalis is attributed to significant price increases in key vegetables: tomato prices surged by 30 percent, onion prices by 46 percent, and potato prices by 59 percent. These hikes are largely due to the low base of the previous fiscal year. 

“Tomatoes, onions and potatoes have been the key contributors to this rise as adverse weather conditions have impacted their supply,” said Pushan Sharma, Director-Research, CRISIL Market Intelligence and Analytics.

He also noted that thali prices are expected to be lower year-on-year in the future due to the high base of the previous fiscal year, when tomato prices had surged.

“Sequentially, though, tomato prices will rise before correcting at the end of August as fresh supplies arrive from southern and western states,” Sharma added.

The CRISIL report highlights several factors contributing to the price surges. These include lower onion arrivals due to a significant drop in rabi acreage, a decline in potato crop yield due to unseasonal rainfall in March, and virus infestation in the tomato summer crop caused by high temperatures in key growing regions of Karnataka and Andhra Pradesh, which led to a 35 percent year-on-year decline in tomato arrivals.

On the other hand, the decrease in the cost of non-vegetarian thalis is driven by an estimated 14 percent year-on-year decline in broiler prices, stemming from a high base in the previous fiscal year, an oversupply situation, and lower feed costs.

Despite the year-on-year changes, the report noted that the cost of both vegetarian and non-vegetarian thalis increased month-on-month by 6 percent and 4 percent, respectively.