Homemade food became 2% more expensive in April, with higher prices for tomatoes and LPG spoiling the taste; will the budget continue to fluctuate?:
The price of both vegetarian and non-vegetarian home-cooked thalis increased by 2% year-on-year in April. This was mainly due to a sharp rise in tomato prices and an increase in cooking fuel costs. This was revealed in the monthly ‘Roti Rice Rate’ (RRR) report of Crisil Intelligence. The report states that the reduction in cultivation area in the southern states led to a decrease in production, which led to a 38% increase in tomato prices year-on-year. Meanwhile, the prices of vegetable oil and liquefied petroleum gas (LPG) cylinders increased by 7% each due to global supply pressure.
Pushan Sharma, Director, Crisil Intelligence, said, “The price of both vegetarian and non-vegetarian home-cooked thali increased by 2% year-on-year in April as tomatoes, vegetable oil and LPG cylinders became costlier.”
Crisil has warned that tomato prices may remain under pressure in the coming months, with further increases expected in July and August due to a decline in summer sowing, weak price sentiment, and concerns about heat waves in key growing regions of northern India.
Onions may become expensive
The report also expressed concerns about onion prices. Onion prices are expected to remain elevated due to an estimated 4-6% decline in rabi crop production this year. The report further stated that vegetable oil prices are also expected to remain elevated in the near term due to ongoing uncertainty in West Asia.
On the other hand, pulse prices are expected to remain soft due to increased supply and sluggish demand. According to Crisil, domestic production is low. However, favorable import conditions, the government’s release of buffer stocks, and continued domestic arrivals are expected to ensure adequate supply of pulses in the market in the near future.
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