The expense of preparing home-cooked meals in India saw a noticeable increase in August, with non-vegetarian thalis becoming 5% more expensive and vegetarian thalis rising by 1% compared to the previous year. This data comes from a recent CRISIL Intelligence report, highlighting the growing pressure on household budgets.
Key Drivers of Rising Meal Costs
Several factors contributed to the higher cost of Indian home meal costs. For both vegetarian and non-vegetarian dishes, a significant contributor was the sharp increase in onion prices, which jumped 43% year-on-year to ₹40 per kg in August from ₹28 a kg a year earlier. This surge is attributed to tight supply, exacerbated by unseasonal rainfall and hailstorms in Maharashtra impacting late-season crops and stored inventories.
Beyond onions, the cost of edible oil rose 11% year-on-year, while LPG cylinder prices increased by 10%, further adding to the overall expense of cooking at home.
Non-Vegetarian Thalis See Larger Hike
The average cost of a vegetarian thali prepared at home reached ₹29.50 in August, up from approximately ₹29 a year prior. However, non-vegetarian thalis experienced a more substantial jump, climbing to ₹57.50 from about ₹55. This larger increase for non-vegetarian meals was primarily due to broiler chicken prices, which were estimated to have risen 10% year-on-year. Chicken typically accounts for around half the cost of a non-vegetarian thali, and higher feed costs for poultry contributed significantly to this component's price hike.
Some Relief from Other Vegetables
Despite the overall increase, some relief came from other staple vegetables. Potato prices fell 12% year-on-year, supported by an estimated 2-3% increase in rabi production and expanded cultivation areas. Tomato prices also declined significantly by 28% amid increased market arrivals. These reductions helped to temper the overall rise in the cost of vegetarian thalis.
Monthly Fluctuations
On a month-on-month basis, August saw a mixed picture. While the cost of a vegetarian thali rose 1% from July, mainly due to a 17% increase in onion prices, the non-vegetarian thali actually became 1% cheaper. This monthly decline in non-vegetarian thali costs was linked to an estimated 4% drop in broiler prices, as demand softened during the Shravan month.
CRISIL's thali calculation considers prevailing input prices across various regions of India. A vegetarian thali typically includes roti, vegetables, rice, dal, curd, and salad, while the non-vegetarian version replaces dal with broiler chicken.
The report underscores that household food bills are increasingly influenced not just by vegetable prices, but also by energy, edible oil, and protein costs, making everyday ingredient price changes quickly reflect on family budgets.