In July, the price of the basic vegetarian thali in India increased by 28 percent compared to June, as reported by Crisil’s monthly food cost indicator released on August 7. The report indicates that nearly a quarter (about 25 percent) of this increase can be directly attributed to the rising cost of tomatoes.
Dramatic Tomato Price Surge in July
In June, tomato prices were Rs 33/kg, but in July, they skyrocketed to Rs 110/kg, representing a massive 233 percent increase within a single month. During the same period, the prices of onions and potatoes experienced more gradual rises, with a 16 percent and 9 percent increase, respectively.
In contrast, the cost of the non-vegetarian thali rose at a slower rate due to a significant 35 percent drop in broiler prices, which constitute over 50 percent of the overall cost. Consequently, the non-vegetarian thali’s cost increased by 11 percent in July. There was a slight relief in the form of a 2 percent reduction in the price of vegetable oil.
Indian Spice Hikes Impact
In the report authored by Pushan Sharma, the Director at Crisil, it is noted that the cost of the thali increased in a consistent sequence for the third consecutive month in July. Additionally, it saw a year-on-year rise for the first time in the current fiscal year. The primary factor behind this rise was the significant surge in tomato prices.
The assortment of Indian spices has experienced substantial price hikes over the last year, with essential seasonings like chilli and cumin registering notable double-digit increases. Specifically, chilli prices rose by 69 percent, and cumin prices went up by 16 percent in July compared to the previous month.
However, the report emphasizes that due to the relatively smaller quantities of these ingredients used in a thali, their cost impact remains lower than that of certain vegetable crops.
