Prices of Veg, Non-veg Thali Decline 5% in February: CRISIL

Moneylife Digital Team 11 March 2025

Economy & Nation

The cost of vegetarian and non-vegetarian thalis in India declined by 5% in February compared to the previous month, according to a report by CRISIL Intelligence. The reduction is attributed to lower prices of essential ingredients, including vegetables, particularly onions, tomatoes, potatoes and broiler chicken.

The decline in vegetarian thali costs was primarily driven by a sharp fall in the prices of tomatoes, onions and potatoes. Tomato prices fell 25% month-on-month (m-o-m) to Rs23/kg (kilogram) due to a 20% increase in arrivals, while onion and potato prices dropped 7% and 17%, respectively. An 11% decrease in the cost of liquid petroleum gas (LPG) cylinders, from Rs903 to Rs803 for a 14.2kg cylinder in Delhi, also contributed to the relief for consumers.

However, the decline could have been sharper if not for the increase in the prices of onion (11%), potato (16%), and vegetable oil (18%) on a year-on-year (y-o-y) basis, the rating agency says.

The non-vegetarian thali also saw a 5% cost reduction in February from the previous month, driven by a decrease in broiler chicken prices. The price of broiler fell by around 5% m-o-m due to reduced demand amid a bird flu scare in southern India. However, on a y-o-y basis, the cost of a non-veg thali rose by about 6%, mainly due to a 15% surge in broiler prices, which accounts for nearly half of the total cost of a non-veg thali. The rise in broiler prices can be attributed to elevated feed costs and a low base from last year when prices dipped due to excess supply.

The fall in thali prices brings much-needed respite to households amid persistent inflationary pressures on essential commodities. CRISIL’s monthly food plate cost indicator, which tracks the prices of ingredients across the country, highlights the regional variations and the primary factors influencing food affordability.

Going ahead, Pushan Sharma, director for research at CRISIL Intelligence, says the arrival of fresh rabi crops is expected to keep vegetable prices subdued, offering continued relief for vegetarian thali costs. "That said, temperature conditions in March will bear watching as above-normal temperatures can impact the shelf life and quality of onions, which need to be stored for the next six months, as well as the quantity and quality of wheat - the most significant crop of the rabi season."

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