Vegetarian thali becomes more affordable in February, non-veg thali costlier

New Delhi: The cost of home-cooked vegetarian meals fell for the third straight month in February, even as that of non-vegetarian meals rose sequentially.

The cost of a vegetarian plate, or thali, fell 2% to ₹27.5, while non-vegetarian thali rose 4% to ₹54, according to rating agency Crisil.

Year-on-year, though, the cost of a vegetarian meal increased 7%, while non-vegetarian thali declined 9%.

A typical vegetarian meal includes roti, vegetables (onion, tomato and potato), rice, dal, curd and salad. The non-vegetarian version replaces dal with broiler chicken. Despite fluctuating commodity prices, the share of ingredients used for arriving at the prices remains constant.

The cost of vegetarian thalis declined as onion prices fell 14% month-on-month in February, while those of potatoes eased 3%, Crisil said. The rise in non-vegetarian meal prices was mainly due to a 10% increase in broiler prices, which account for half of the thali's cost This was due to supply constraints following an outbreak of bird flu in Andhra Pradesh and rising temperatures. 

The approaching Ramadan contributed to a surge in demand, pushing up prices.

On a yearly basis, however, a 29% and 38% jump in prices of onion and tomato, respectively, led to a 7% increase in cost of a vegetarian meal. Prices of rice and pulses, contributing 20% to the cost of a vegetarian thali, also rose 14% and 20%, respectively.

In contrast, a 20% fall in broiler prices over the year led to a decrease in the cost of non-vegetarian thalis.

Cereal prices are expected to stay high for a while until the Rabi harvest arrives in the market, which is expected by the end of March for wheat and April for paddy.

In the case of tomatoes, prices are expected to inch lower if climatic conditions remain unaltered, as the area under tomato cultivation has seen an uptick this Rabi season. 

Rabi onions start arriving in February, which will likely keep prices in check for a while. In the long run, however, prices are seen high as acreage under the crop is estimated to have significantly declined, which will hurt output and crimp supplies, Pushan Sharma, director of research, Crisil Market Intelligence and Analytics, said.

Also Read: Onion prices are already high, and there's more bad news

Unpredictable weather events remain the biggest risk to food and overall inflation. However, government steps to boost food supplies, similar to past interventions, can mitigate some of the inflationary impact, according to Crisil's India Outlook 2024 report.

Food inflation, measured by the consumer food price index, which accounts for nearly half of the overall consumer price basket, rose to 9.53% in December, up from 8.70% in November, 6.61% in October and 6.62% in September.

India has faced repeated weather-related disruptions, with uneven monsoon distribution this fiscal year causing vegetable prices to soar and food grain inflation to rise significantly. Vegetable prices are especially susceptible to a demand-supply mismatch exacerbated by weather disruptions.

The government typically intervenes with measures such as export bans and import facilitations to manage supplies and curb inflation, yet challenges persist due to reduced outputs and erratic weather patterns.

Crisil has indicated that the high inflation in food grains, especially cereals and pulses, is unlikely to ease soon.