Indian Thali Costs Drop Significantly: Vegetarian Meals Down 17%, Non-Vegetarian 12% in October 2023

A significant decrease in vegetable and pulse prices has contributed to a remarkable reduction in the cost of home-prepared meals in India this October.

New Delhi:

According to a recent Crisil report released Friday, the expense of preparing home-cooked vegetarian thalis decreased by an impressive 17 percent year-on-year in October, while non-vegetarian thalis saw a 12 percent reduction. This welcome decline primarily resulted from substantially lower prices of essential vegetables and pulses.

The report highlights that potato prices experienced a sharp 31 percent decrease on a high base, with production in the 2024-2025 Rabi season increasing by 3-4 percent compared to the previous year. Simultaneously, tomato prices plummeted by 40 percent year-on-year due to increased supplies from western and southern markets, as indicated by Crisil's monthly food plate cost indicator.

Pushan Sharma, Director at Crisil Intelligence, explained that onion prices fell because of greater supply from the 2024-25 rabi season stocks, arriving before the kharif crop reaches markets in November.

"We also observed price corrections in pulses, supported by increased imports of Bengal gram, yellow pea, and black gram. Looking ahead to the medium term, onion prices may experience a moderate increase, as excessive rainfall during August and September in key producer states like Karnataka and Maharashtra has delayed kharif transplantation and raised concerns about yields," Sharma noted.

The report suggests potato prices will likely remain firm through November due to limited supplies of the early rabi crop, though relief may come when cold storages release their stocks around mid-December.

Tomato prices are expected to continue their downward trend amid ongoing kharif arrivals, according to the analysis.

However, Sharma cautioned that pulse prices might increase in the near term, reflecting the impact of excessive rainfall on kharif yields and the recent implementation of a 30 percent import duty on yellow pea. Should the government extend similar import duties to other pulses, prices could rise more steeply.

The cost reduction for non-vegetarian thalis was somewhat less dramatic because broiler prices decreased by only 6 percent year-on-year. Since broilers constitute approximately half of the non-vegetarian thali cost, the impact was moderated. Nevertheless, the lower prices of vegetables and pulses helped reduce the overall expense of preparing non-vegetarian meals at home as well.