Key Points

The cost of the vegetarian thali has reduced due to a sharp drop in prices of vegetables and pulses. Potato prices declined 31 per cent, owing to dumping of stocks by cold storage units, while tomato prices fell 8 per cent year-on-year on the back of higher supplies, the report stated.

Onion prices declined 46 per cent year-on-year because of higher rabi supplies entering the market and the increase in domestic supplies resulting from the bearish import momentum from Bangladesh, which accounts for 40 per cent in India's onion export basket, it pointed out.

Prices of pulses declined 16 per cent because of downward pressure from an increase in the imports of Bengal gram, yellow pea and black gram, which are allowed until March 2026 to bring down prices for consumers, the report observed.

However, vegetable oil prices rose 21 per cent year-on-year owing to higher demand at the start of the festive season and a 6 per cent year-on-year increase in prices of liquefied petroleum gas cylinders came in the way of a sharper decline in the overall cost of thalis.

The decline in the cost of the non-vegetarian thali was relatively slower on account of a moderate 1 per cent year-on-year fall in broiler (chicken) prices, which make up about 50 per cent of the cost. But the lower prices of vegetables and pulses supported the decline.

Crisil Intelligence director Pushan Sharma said, "Going forward, onion prices could see a moderate increase in the medium term as excess rainfall in August and September in key producing states such as Karnataka and Maharashtra has delayed kharif transplantation and raised yield concerns.”

"Moreover, if heavy rainfall affects stored onions or the standing kharif crop in October, there could be additional upward pressure on prices," he said.

Tomato prices, meanwhile, are expected to firm up during the festive season, compounded by the isolated impact on yield from excessive rainfall in major producing states, such as Karnataka and Maharashtra, Sharma added.

- IANS