Report: Vegetarian Thali Costs Surge, Non-Vegetarian Thali Sees Significant Decline in January
The dynamics of food pricing often reflect the intricate balance between various factors such as supply, demand, production costs, and market trends. A recent report by Crisil Market Intelligence and Analytics (MI&A) Research sheds light on the evolving costs of home-cooked vegetarian and non-vegetarian thalis in January.
Surprisingly, while the cost of the vegetarian thali witnessed a 5% year-on-year increase, the non-vegetarian thali saw a notable decline of 13%. Let's delve deeper into the factors driving these fluctuations and their implications for consumers.
Rising Costs of Vegetarian Thali
The report highlights a significant surge in the cost of ingredients contributing to the vegetarian thali. Notably, staples like onions and tomatoes experienced sharp price hikes, with a staggering 35% and 20% year-on-year increase, respectively. Additionally, rice and pulses, constituting significant portions of the thali, saw price escalations of 14% and 21%, respectively.
These inflationary pressures can be attributed to a combination of factors, such as supply chain disruptions, adverse weather conditions, and increased production costs.
Decline in Non-Vegetarian Thali Costs
In stark contrast, the cost of the non-vegetarian thali witnessed a notable decline, primarily driven by a significant drop in broiler prices. January saw a remarkable 26% decrease in broiler prices compared to the same period last year.
This downward trend is attributed to higher production levels, resulting in an oversupply situation in the market. Consequently, consumers opting for non-vegetarian options benefited from reduced costs during this period.
Sequential Trends in Thali Costs
Interestingly, while the year-on-year trends depict opposing trajectories for vegetarian and non-vegetarian thalis, the sequential analysis unveils a different narrative. Both thalis experienced a sequential decline in costs, with vegetarian thali prices falling by 6% and non-vegetarian thali prices dropping by 8%.
Factors Driving Sequential Declines
The sequential decrease in thali costs can be primarily attributed to the easing of price pressures on certain key ingredients. Notably, there was a substantial decrease in the prices of onions and tomatoes on a month-on-month basis.
Factors such as increased domestic supply of onions due to export curbs and fresh arrivals of tomatoes from northern and eastern states contributed to this decline.
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Additionally, the non-vegetarian thali witnessed faster cost reductions due to significant month-on-month dips in broiler prices, which account for a substantial portion of its cost.
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