Thali economics: Fall in price of onion, potato, and pulses makes eating at home lighter on the pocket, finds study

In the world of convenience, eating at home just got cheaper. According to a recent Crisil Intelligence report, the cost of preparing a vegetarian thali and a non-vegetarian thali in August has declined almost 7% and 8% year-on-year respectively.

For the veg thali, the year-on-year decline is led by a sharp reduction in the prices of onions, potatoes, and pulses. Prices of onion have fallen by 37% from last August on the back of a 18-20% increase in annual production this year. Meanwhile, potato prices have also declined by 31% year-on-year, in the wake of higher production and stabler weather conditions this year.

“In the year-ago period, potato production had shrunk 5-7% due to blight infestation and weather changes, pushing up the prices,” the report stated.

Meanwhile, prices of pulses declined 14% year-on-year driven by higher production and stock levels compared with the year-ago period.

A veg thali that comprises of roti, vegetables (onion, tomato and potato), rice, dal, curd and salad cost ₹29.1 in August. According to the report, a non-veg thali that has all the same elements, except dal, replaced by chicken (broiler) cost ₹54.6 in the same month.

However, the cost of a vegetarian thali reached a seven-month high since December, driven by a rebound in vegetable prices following January’s decline and a sharp increase in tomato prices.

“For potato and onion, the fall in prices was on a high base, while prices of pulses moderated amid higher production. However, an increase in tomato and vegetable oil prices limited the extent of the overall decline in thali costs,” said Pushan Sharma, Director, Crisil Intelligence, in a statement.

The report showed that vegetable oil prices rose 24% compared to August last year, driven by higher demand at the start of the festival season. Additionally, a 6% increase in liquefied petroleum gas (LPG) cylinder prices curtailed the overall decline in thali costs.

Meanwhile, the cost of non-veg thali has risen only 2% month on month and declined at a sharper 8% year on year.

This reduction is attributed to nearly 10% drop in broiler costs, which make up about 50% of the thali cost.

“The rise in the cost of non-vegetarian thali was capped as oversupply of broilers kept their prices stable on-month despite a rise in demand with the conclusion of the Shravan month,” the report stated.

The average cost of preparing a thali at home is calculated using prevailing ingredient prices across North, South, East, and West India. These changes indicate how much does it impact a common man's finances.

Sharma anticipates thali prices to go further below the August level in the upcoming months due to high base year prices.

“In the near-term, thali prices are likely to remain lower on-year, aided by the high base of vegetables and pulses. The government’s decision to allow free imports of yellow pea and black gram is expected to exert downward pressure on pulse prices,” Sharma added.

This comes at a time when convenience platforms such as Swiggy, and Zomato have hiked their platform fees leading to a rise in home delivery of food prices. So, instead of ordering in this time, you might consider cooking at home and saving some money.