Thalinomics: Why Veg Thali Prices Are Higher Than Non-Veg Thali

A report from the rating organisation Crisil has highlighted a significant and concerning rise in the price of tomatoes. This increase has led to a 34% monthly increase in the cost of a vegetarian thali. The "Roti Rice report" by Crisil reveals that while the overall cost of preparing a thali has only increased by 13%, non-vegetarian thalis were comparatively less impacted in the longer term in July compared to June. Specifically, tomato prices experienced a substantial surge, escalating from Rs 33 per kg in June to Rs 110 per kg in July, marking a staggering 233% increase per kg.

Crisil's analysis indicates that the standard expense for assembling a thali at home is determined by considering input costs across different regions of India, including the north, south, east, and west. The report for August, as quoted by The Times of India, noted that onion and potato prices surged by 16% and 9% respectively on a month-on-month basis, providing further evidence of the rising costs.

Additionally, the prices of other essential ingredients such as chili and cumin also witnessed notable increases, with their costs rising by 69% and 16% respectively from the previous month. This marks the third consecutive month of inflation in thali costs. Crisil pointed out that this is the first time in the financial year that the costs have risen from a year-on-year perspective as well.

Although there was a 2% monthly decrease in the cost of vegetable oil, which provided some relief from the overall increase in thali costs, the report indicated that the upward trend in tomato prices may only start to ease in September. The report also highlighted a potential risk of cereals, especially rice, experiencing price hikes, although hopefully not to the extent seen in August and September of the previous year. This poses a challenge, particularly considering that tomato prices have even crossed Rs 300 per kg in Delhi, despite government efforts to sell them at subsidised rates.