New Delhi: A report on Friday brought some good news as prices of tomato and broilers declined in India. It revealed that the cost of both home-cooked veg and non-veg thalis (plates) eased in August. This price decline has led to a more affordable dining experience for many households.
The effect was seen on both an on-year and on-month basis, according to Crisil’s monthly indicator of food plate cost. On-year, the decline was steeper at 8 percent and 12 per cent for home-cooked veg and non-veg thalis, respectively.
Tomato prices, which accounted for 14 percent of the veg thali cost in August, declined 51 percent year-over-year (from Rs 102 per kg in August 2023 to Rs 50 per kg in August 2024) due to fresh arrivals from southern and western states.
Prices of the three key vegetables showed a divergent trend in August.
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“Onion and potato surged by Rs 15 per kg (51 per cent) and Rs 13 per kg (53 per cent) on-year, respectively, due to lower arrivals, while tomato saw a sharp decline of Rs 52 per kg (51 per cent) due to fresh supplies,” said Pushan Sharma, Director-Research, Crisil Market Intelligence and Analytics.
A 27 percent drop in fuel cost—to Rs 803 for a 14.2 kg LPG cylinder in Delhi in March 2024 from Rs 1,103 in August 2023—contributed to the decline.
Moreover, prices of vegetable oil, chilli and cumin, which together account for less than 5 per cent of the veg thali cost, eased 6 per cent, 30 per cent and 58 per cent on-year, respectively.
The cost decline for a non-veg thali was due to an estimated 1-3 percent month-on-month decline in broiler prices. This decline resulted from the Shravan month in August, a period when non-veg consumption traditionally drops, thereby influencing the cost of a non-veg thali.
However, the report mentioned that a 2 percent and 3 percent month-on-month rise in the prices of potato and onion, respectively, prevented further declines in the thali cost. These price increases were primarily due to lower arrivals and the anticipation of increased demand during the upcoming festive season.
According to Sharma, potato prices are likely to remain firm due to low production year over year due to late blight infestations in key producing states such as Gujarat, Punjab, Haryana, and Uttar Pradesh.
On the other hand, onion prices could see a further uptick in the near term, given the approaching festive season and tight Rabi supplies until the Kharif stock starts arriving in mandis (markets). This information can help consumers and policymakers prepare for potential changes in food prices.
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–IANS
