Soaring tomato prices have significantly contributed to an increase in meal costs, particularly impacting the prices of both vegetarian and non-vegetarian thalis. In the month of July, the prices of these thalis surged by 28% and 11% respectively. Notably, the surge in tomato prices played a substantial role, accounting for a staggering 22% of the overall cost increase for vegetarian thalis. This surge in costs also affected other components of the thali, as onion and potato prices followed suit, further impacting the overall expense. The government is grappling with the challenges posed by these surging tomato prices, which have become a prominent policy concern. Efforts are underway to address the price surge and mitigate the impact on food inflation. The tomato price surge is anticipated to persist at elevated levels until at least the end of August. Interestingly, the cost increase for non-vegetarian thalis was comparatively more gradual due to reduced prices for broilers. While chili and cumin prices witnessed an increase, their influence on thali costs remained limited. The decline of vegetable oil prices by 2% partially offset the overall increase in thali costs. Crisil’s comprehensive analysis takes into account input prices from different regions of India, shedding light on the diverse ingredients driving fluctuations in thali costs.
