The cost of both vegetarian and non-vegetarian thalis prepared at home rose 2% year-on-year in April, driven by a sharp increase in tomato prices and higher
cooking fuel costs, according to Crisil Intelligence’s monthly Roti Rice Rate (RRR) report.
The report said tomato prices surged 38% on-year due to lower production after a decline in acreage across southern states. Meanwhile, prices of vegetable oil and liquefied petroleum gas (LPG) cylinders increased 7% each amid global supply pressures.
“The cost of both home-cooked vegetarian and non-vegetarian thalis rose 2% on-year in April as tomato, vegetable oil and LPG cylinders became expensive,” said Pushan Sharma, Director, Crisil Intelligence.
Crisil warned that tomato prices are likely to remain under pressure in the coming months and may rise further during July and August due to lower summer sowing, weak price sentiment and concerns over heatwaves in key northern growing regions.
Also read: World food prices rise to more than three year high in April, FAO says
The report also flagged concerns around onion and potato prices. Onion prices are expected to stay elevated due to an estimated 4-6% decline in rabi production this year. Potato prices, too, are likely to rise as harvesting concludes and cold storage stocks begin entering the market.
Vegetable oil prices are also expected to remain high in the near term because of continued uncertainty in West Asia, the report added.
On the other hand, pulses are likely to remain soft due to higher supplies and subdued demand. Crisil said favourable import parity, release of government buffer stock and steady domestic arrivals are expected to keep the market well supplied in the near term despite lower domestic production.
