The cost of ready-to-eat food has increased in August. According to Crisil Intelligence's monthly report released on Tuesday, the cost of a vegetarian thali increased 1% year-on-year to Rs 29.5. At the same time, the price of non-vegetarian thali increased by 5% to Rs 57.5. However, non-veg tali remained cheaper by about 1% in August compared to July.
According to the report, the increase in prices of onion, edible oil and cooking gas in August has put pressure on domestic food costs. On the other hand, the cheapness of potatoes and tomatoes did not increase the total cost of the thali much. Despite chicken being expensive in non-vegetarian thali, its cost declined in August as compared to July.
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Onion increased kitchen expenses
Onion prices rose 43% year-on-year to Rs 40 per kg in August. Last year in August, onion was priced at Rs 28 per kg. According to the report, onion supply was affected due to unseasonal rains and hailstorm in Maharashtra during March-April. Its effect was visible on its price in August. During the same period, the price of edible oil increased by 11% and the price of LPG increased by 10%. Due to these things becoming expensive, the cost of home-cooked food increased.
While onions and oil became costlier, the fall in prices of potatoes and tomatoes provided relief. In August, potatoes became cheaper by 12% and tomatoes by 28% on an annual basis. This reduced the impact of expensive items and the cost of vegetarian thali increased by only 1% on annual and monthly basis. On month-on-month basis, onion prices rose by 17% in August, while tomatoes became cheaper by 7%. Because of this, there was not much change in the cost of the vegetarian thali.
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Non-veg thali remained cheaper since July
Chicken prices rose 10% year-on-year in August. Due to this, the cost of non-vegetarian thali increased by 5% on an annual basis to Rs 57.5. However, in July this cost was Rs 58.3, meaning non-veg thali was about 1% cheaper in August.
According to the report, due to reduced demand for chicken in the month of Shravan, its price decreased by 4% month-on-month in August. Crisil Intelligence Director Pushan Sharma said that onion prices may remain high for the next two-three months. The reason for this has been said to be less supply of Rabi crop and delay in arrival of Kharif crop.