How India eats: Thali prices rise again on high vegetable costs
Decreased tomato arrivals by 8 percent in June increased its cost; potato prices jumped 4 percent while onion rates were steady
Rising prices of key essential food items have started to pinch once again. Costs of tomato and potato increased by 36 percent and 4 percent respectively month-on-month in June which drove overall thali prices, shows an analysis by Crisil.
Decreased tomato arrivals by 8 percent in June shot up its cost while onion prices held steady with no change from the previous month. An estimated 5 percent month-on-month rise in broiler chicken prices also contributed to the overall jump in non-vegetarian thali cost. Broiler chicken prices rose due to reduced supply led by extreme heat which caused higher mortality rate and slower growth of chickens, says Crisil.
However, on a yearly basis, both vegetarian and non-vegetarian thali costs were low.
Tomato prices declined by 24 percent year-on-year to Rs32 per kg in June due to high base effect amid yields concerns last year. Similarly, prices of potato and onion declined by 20 percent and 27 percent year-on-year respectively over a high base. Last year, production of potato dropped by 6 percent due to blight infestations and climatic changes, while rabi onion production declined by 20 percent amid decline in acreages and yield.
