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Some cheer! Home-cooked thali costs dip 4% in April as vegetable prices ease

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Home made food lovers breathed a sigh of relief in April as the cost of preparing a vegetarian and non-vegetarian thali dropped by 4% as compared to the same month last year. Crisil’s latest Roti Rice Rate Report said that the fall was majorly attributed to the reduction in vegetable prices, even as cooking essentials like LPG and edible oils continued to see price rises due to high import duties. On a monthly basis, vegetarian thali prices dropped 1 per cent in April, while non-vegetarian options became nearly 2 per cent cheaper. The change was helped by a 14 per cent fall in onion prices and a 2 per cent decline in broiler prices. Tomato prices, however, edged up slightly by 1 per cent over March.

Vegetarian meals

Veg-thalis became more affordable primarily because of falling prices of key ingredients. Tomatoes led the drop, falling 34 per cent to Rs 21 per kg from Rs 32 a year ago, due to a high base effect from last year’s poor crop yield. Potatoes and onions also followed suit, witnessing year-on-year declines of 11 and 6 per cent respectively, thanks to improved harvests after last year’s disruptions caused by last year’s infestation and unseasonal rainfall in West Bengal.

Non-vegetarian meals

The overall cost of non-vegetarian thalis also eased, supported by a 4 per cent fall in broiler chicken prices, an ingredient that typically accounts for half the cost of a non-veg meal. The dip was attributed to oversupply and reduced demand following bird flu outbreaks in Maharashtra, Andhra Pradesh, Telangana and Karnataka.

Oils and LPG

In contrast, cooking essentials have become costlier. Edible oil prices surged 19 per cent over the year, while LPG cylinders became 6 per cent more expensive.

Outlook

Crisil said that oil prices are expected to ease in the upcoming months, as global supplies increase.“Edible oil prices are also likely to soften over the next 2-3 months as global supplies pick up, mainly from Argentina, Indonesia and Malaysia,” said Pushan Sharma, director- research Crisil Intelligence.Looking ahead, Sharma said, “Rice prices, though, are expected to inch up with a projected increase in exports. And among vegetables, onion prices are likely to be rangebound while tomato prices are forecast to rise on account of seasonality.”

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