Household meal costs seen staying elevated as tomato, LPG prices keep pressure on: Crisil
New Delhi, July 8
Household food expenses are likely to remain under pressure in the near term as higher prices of tomato, vegetable oil and cooking gas continue to offset relief from lower potato prices, according to Crisil Intelligence's latest 'Roti Rice Rate' report.
The report said the cost of preparing a vegetarian thali at home rose 5 per cent on-year in June, while the cost of a non-vegetarian thali increased 6 per cent on-year, driven mainly by higher prices of tomato, onion, vegetable oil and liquefied petroleum gas (LPG).
According to Crisil, tomato prices increased 31 per cent on-year after delayed and lower summer crop planting caused by high temperatures in February and March. Vegetable oil and LPG prices also rose 10 per cent on-year each because of supply disruptions linked to the conflict in West Asia, while onion prices edged up as higher-priced stored rabi stocks entered the market. The increase in food costs was partly offset by a 14 per cent decline in potato prices following fresh rabi arrivals.
For non-vegetarian meals, the report said higher broiler prices also added to household expenses, which accounted for about 50 per cent of the cost, due to a tighter broiler supply. Chicken prices were estimated to have risen 7 per cent on-year because extreme summer heat affected poultry supply by increasing bird mortality, reducing weight gain and discouraging fresh chick placements.
On a month-on-month basis, the cost of vegetarian and non-vegetarian thalis rose 4 per cent and 3 per cent, respectively, in June as tomato, onion and potato prices moved higher compared with May.
The report implies that consumers may continue to face elevated food bills if prices of key inputs such as tomatoes, edible oils and cooking gas remain firm. However, continued arrivals of seasonal crops and an improvement in vegetable supplies could help moderate some of the pressure on household budgets in the coming months. For consumers, the trajectory of vegetable prices and global energy markets will remain key factors influencing the cost of preparing meals at home.
— ANI
Reader Comments
As someone who runs a small tiffin service in Pune, this is hitting us hard. I have to hike prices but my customers are already struggling. The 5-6% increase might seem small on paper, but when you're feeding 50 people daily, it adds up quickly. Government should look at stabilizing vegetable oil prices through the buffer stock mechanism. 🤔
Interesting report from Crisil. I'm an economist based in Mumbai and this aligns with what we're seeing in CPI food inflation data. However, I'd question whether the 'thali' methodology fully captures regional variations. In South India, for instance, we consume more rice and less wheat, so the impact might differ. Still, the core message is clear: food inflation remains stubborn. 📊
Living in Delhi, I've noticed that while tomatoes and onions are up, potatoes are actually cheaper now. But what really hurts is the LPG price - we're a family of 5 and need at least one cylinder every 45 days for cooking. Plus with the heat wave in Rajasthan affecting poultry, chicken prices are also through the roof. Murg musallam ab luxury ban gaya hai! 🐔
Honestly, I think the government needs to do more than just monitor prices. The edible oil crisis is a direct result of our dependence on imports from Ukraine and Indonesia. Why haven't we invested in domestic oilseed production like mustard and groundnut? Also, the West Asia tensions are only going to worsen if the Israel-Iran situation escalates. Bharat ko aatmanirbhar hona hoga. 🇮🇳
J Jessica F