CRISIL: Food prices increase by 11% due to high vegetable costs in September

The impact of food inflation on daily life and monthly finances is once again felt. The latest Crisil monthly report released on Friday shows that the price of vegetables has risen, resulting in an increase of 11% over the past year. The price of vegetables, which account for 37%, has increased significantly. A decline in the price of chicken caused a decrease in the non-vegetarian version's cost by about 2%. According to the report, a non-vegetarian thali was expected to cost Rs 59.3, whereas the vegetarian version would be priced at Rs 31.3. The latest Crisil Report stated that "the veg-thali price rose due to the increase in prices of vegetables which collectively accounted for 37% of thali costs." Due to an increase in the price of vegetables, which account for 37% of total thali costs, the cost of the thali has increased from Rs 28.1 to Rs 31.3. In September, the prices of tomato, onion, and potato rose by 53%, 50 %, and 18%, respectively. This was due to the lower arrivals of tomato and onion in Andhra Pradesh, as well as adverse weather conditions in Maharashtra. The price of pulses, which accounts for 9%, has increased by 14% as a result of a decrease in production from last year. This led to fewer opening stocks this year. The average cost to prepare a thali at home is calculated by comparing the input prices in different parts of India. Crisil's monthly reports analyse the impact these prices have on the total expenditure of an average consumer. Data is taken into consideration for the price of different essential ingredients, such as pulses, poultry and vegetables, spices, cooking oil and edible oil. Crisil stated that the fuel price dropped by 11 percent from Rs 903 per 14.2 kg LPG in Delhi last September to Rs 803 this March. This prevented a further rise in thali prices. According to Crisil the non-veg, Rs 59.5 thali saw a 13% decline in broiler price compared to the previous year. This is a relief, as broiler costs account for 50% the thali's cost. The monthly cost of veg and nv thali remained the same. The increase in onion prices was due to a low rabi supply on the market, and a reduced export duty. Potato prices dropped by 2% as a result of stocks being released from cold storage. Tomato prices also fell by 9%, due to increased arrivals in the southern and western markets. A vegetarian thali includes roti (as well as vegetables such as onion, tomato and potato), curd, rice, dal and salad. The vegetarian thali is the same as the non-vegetarian one except that the dal is replaced with chicken. In August 2024, India's retail inflation increased to 3.65% from 3.54%. The Reserve Bank of India (RBI)'s Monetary Policy Committee maintained the Repo Rate at 6.50% in August. The committee will meet next week in order to further evaluate the policy.