Food inflation: Tomato price hits household budget hard, cost of vegetarian thali rose by 34% in July

Inflation or the rise in prices of commodities, especially household goods and food items, can ruin any family's household budget. Recently, the rise in cost of all vegetables, particularly tomatoes, onions and chillies, due to excessive rains in states and areas that produce these vegetables, has disbalanced the common household budget. A recent research by consultancy firm Crisil has shown that in the past 17 months or so, the cost of vegetarian thali in the Indian households has risen from Rs 24.4 to Rs 37.7 and the cost of non-vegetarian thali has risen from Rs 55.6 to Rs 66.8. 

The data shows that the spike has been sharpest in the last month (July 2023) — with the cost of vegetarian and non-vegetarian thalis rising by 34 per cent and 13 per cent on-month, respectively, in the month of July.

Talking about the methodology, Crisil explained that the average cost of preparing a thali at home has been calculated based on input prices prevailing in north, south, east, and west India. And the monthly change reflects the impact on the common man’s expenditure. The data also reveals the ingredients (cereals, pulses, broilers, vegetables, spices, edible oil, cooking gas) that have been driving changes in the cost of a thali.

Monthly indicator of food-plate cost 

(Credit: Crisil)

As per Crisil, the numbers in the table above indicate the cost of preparing a thali at home. Notably, the firm says that this is not the retail price of a thali, which includes overhead costs, staff expenses, and profit margins as well, but the cost of one prepared at home. A vegetarian thali comprises roti, vegetables (onion, tomato, and potato), rice, dal, curd, and salad. And for a non-vegetarian thali, chicken has been considered instead of dal (broiler prices for July 2023 are estimated).

Main reasons for the rise in cost of thali 

− The manifold rise in tomato prices is one of the primary reasons for the rise in the cost of common man's daily meal.

− The cost of a thali rose sequentially for the third month in a row in July, and also inched up on-year for the first time this fiscal, mainly due to soaring tomato prices

− The cost of vegetarian and non-vegetarian thalis rose 34 per cent and 13 per cent on-month, respectively, in July 

− Of the 34 per cent rise in the cost of a vegetarian thali, 25 per cent can be attributed solely to the price of tomato, which rose 233 per cent month-on-month to Rs 110/kg in July from Rs 33/kg in June

− The prices of onion and potato increased 16 per cent and 9 per cent month-on-month, respectively, contributing further to the increase in cost 

− Chillies and cumin also became more expensive, their prices rising 69 per cent and 16 per cent on-month, respectively, in July. However, given the lower quantities of these ingredients used in a thali, their cost contribution remains lower than some of the vegetable crops.

− The cost of a non-vegetarian thali rose at a slower pace as the price of broilers (chicken), comprising more than 50 per cent of the cost, likely declined 3-5 per cent month-on-month in July.

− A 2 per cent on-month decline in the price of vegetable oil provided some respite from the increase in cost of both thalis.