In September, the cost of home-cooked vegetarian thalis witnessed an 11% increase, primarily driven by soaring vegetable prices, which account for 37% of the thali's total cost. In contrast, non-vegetarian thalis have seen a decline in prices, thanks to falling broiler costs.
According to a report by CRISIL Market Intelligence and Analytics, key vegetables such as onions, potatoes, and tomatoes have experienced significant price hikes over the past year. Onions saw a staggering 53% increase, while potato prices rose by 50%. Tomato prices increased by 18%, primarily influenced by heavy rainfall affecting output and lower arrivals in the market.
Pushan Sharma, Director of Research at CRISIL, explains, “We expect a moderate correction in onion prices once the kharif supply comes into the market. Potato prices are also anticipated to decline, although tomato prices may remain elevated due to lean supply.”
The report also highlights that the cost of pulses, which constitute 9% of the vegetarian thali's price, rose by 14% due to decreased production last year, resulting in lower opening stocks this year.
Fortunately for consumers, an 11% decrease in fuel costs—dropping from Rs 903 for a 14.2 kg LPG cylinder in Delhi last September to Rs 803 in March this year—helped mitigate further increases in thali prices.
In contrast, the cost of non-veg thalis benefited from a 13% year-on-year decline in broiler prices, which make up 50% of the non-veg thali cost. This drop provided relief to consumers as stable broiler prices on a month-to-month basis, combined with steady demand, helped maintain non-veg thali prices.
The average cost of a thali is determined by assessing input prices across different regions in India—north, south, east, and west. The report details the various ingredients driving changes in thali costs, including cereals, pulses, broiler, vegetables, spices, edible oil, and cooking gas.
Cocoa Price Rise: A Bitter Trend for Indian Chocolate Makers
In related news, the rising prices of cocoa have raised concerns among chocolate makers and bakers in India. As the cost of cocoa increases, industry professionals are grappling with how to manage the impact on their products and pricing strategies.
The chocolate industry, known for its sweet offerings, is now facing a bitter reality as raw material costs escalate. Producers are being forced to navigate this challenging landscape, which could lead to adjustments in pricing and product formulations.
As cocoa prices continue to rise, chocolate makers are seeking innovative solutions to maintain quality while managing costs. Consumers may soon see the effects of these rising cocoa prices reflected in their favorite treats.
The recent surge in the cost of vegetarian thalis, driven by rising vegetable prices, underscores the challenges faced by consumers amidst fluctuating market dynamics. Meanwhile, the stability in non-veg thali costs offers some relief in these economically challenging times. The chocolate industry’s response to rising cocoa prices will also be crucial as it seeks to balance quality with affordability.