Cost of Indian veg thali rises by 11% as there was an all-round increase in food prices last month. On October 4, this statistical data about Indians’ favorite meal was released by Crisil. Price of onion, potato, and tomato rose manifold. Onion prices have risen by 53% compared to the corresponding period of the last year. Potato prices went up by 50% on a yearly basis. The sharp 18% jump in the prices of tomatoes had partly been on account of weather-related issues.
Heavy rain adversely affected the output of tomatoes both at Andhra Pradesh and Maharashtra. The spurt in prices in onion and potato have been partly on account of the lower arrivals of these items. In September, Veg thali’s cost was Rs 31.3. The veg thali was priced 10 paise more than in August. Vegetables account for 37% of the total cost of the veg thali. Pulses account for 9% of the cost of the veg thali. Pulses prices increased by 14% year-on-year in September. Reduced kharif season acreage had led to the price rise in pulses.
A non-veg thali cost was flat at Rs 59.3. Chicken broiler accounted for half of the non-veg thali and has fallen by 13%. Non-veg thali consumers felt a little relief with a drop in broiler prices. The rise in food prices casts a shadow on RBI rate cuts. RBI has maintained its policy rate at 6.5% in the August meeting itself. This was the ninth successive occasion RBI kept the rate unchanged. Economists had forecasted a 25-basis point rate cut in December.
Cost of Indian veg thali rises by 11%: But why?
Food price volatility may delay a rate cut by RBI. The war in the Middle East has sharpened geopolitical uncertainty. These factors have postponed the hope of rate cut in near future. Food inflation remains an issue of high importance for the Indian economy. There is a difference between the food price change on a veg and non-veg thali.
High priced rainfall and crop arrival has been one of the factors that have hurt the price escalations. The non-veg thali might see some comfort due to a fall in the broiler prices. Uncertainty in global and local markets continues to hurt the food prices.
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