July thali costs rise as onions, oil and LPG get costlier: Report

New Delhi: The average cost of home cooked vegetarian and non-vegetarian thalis increased 4% and 9% year-on-year, respectively, in July, driven by higher prices for onions, vegetable oil, and liquefied petroleum gas (LPG), according to a Crisil report released on Friday.

The rise was partially offset by lower tomato and potato prices. The cost of a vegetarian thali rose to ₹29.1 in July from ₹28.1 a year earlier while a non-vegetarian thali cost ₹58.3, up from ₹53.5 in the corresponding month last year.

Onion prices climbed 20% YoY as higher-priced stored rabi or winter season stocks entered the market. Supplies were further constrained after unseasonal rainfall and hailstorms in Maharashtra, India's top onion producing state, during March and April damaged late-season crop and inventory.


"Going forward, onion prices are expected to remain firm due to tight rabi supplies and an expected delay in kharif onion arrivals," said Pushan Sharma, director, Crisil Intelligence.

He said potato prices could edge higher as expensive cold-storage stocks are released into the market while tomato prices are likely to remain stable in the near term due to fresh arrivals from southern states. However, tomato prices are expected to strengthen from September onwards amid delayed kharif arrivals and seasonal festive demand, he said. Vegetable oil and LPG cylinder prices rose 11% and 10%, respectively, from a year earlier in July, mainly due to supply disruptions and elevated energy prices linked to the West Asia conflict. Edible oil prices are also expected to stay firm, Sharma said, adding higher crude oil prices continue to weigh on freight rates and import costs while elevated polymer and resin prices are pushing up packaging costs.

The increase in overall thali cost was partly cushioned by a 12% and 2% on-year decline in potato and tomato prices, respectively. Potato prices eased following a 2-3% hike in rabi production, supported by higher acreage. Tomato prices remained lower as prolonged high temperatures during February and March delayed summer crop planting by nearly a month, shifting the supply cycle and resulting in higher market arrivals in July.