Indian Thali Costs Drop Sharply in October Driven by Lower Vegetable and Pulse Prices

The cost of home-cooked vegetarian and non-vegetarian thalis in India experienced a substantial drop in October compared to the previous year, according to Crisil Market Intelligence & Analytics. Vegetarian thalis became 17 percent cheaper year-on-year, while non-vegetarian thalis saw a 12 percent reduction. This decline was primarily fueled by a sharp fall in vegetable prices, with onions decreasing by 51 percent, tomatoes by 40 percent, and potatoes by 31 percent. This was due to traders offloading old stock ahead of new arrivals and steady supplies. Pulses also became 17 percent cheaper, supported by increased imports. However, rising edible oil prices (up 11 percent) and LPG cylinder costs (up 6 percent) prevented a more significant overall decrease. Lower broiler chicken prices (down 4 percent) helped the non-vegetarian thali become 3 percent cheaper month-on-month. This trend aligns with broader inflation cooling in India, with September's headline retail inflation at a multi-year low. The October retail inflation data will indicate if this disinflationary trend continues.\n\nImpact\nThis news is positive for consumers as it indicates lower food inflation, which can increase disposable income and boost consumer spending. For businesses, stable or falling input costs can improve margins, though fluctuating commodity prices present challenges. Lower food inflation also eases pressure on the Reserve Bank of India to raise interest rates, potentially benefiting the broader economy and stock market. Rating: 7/10.\n\nDifficult terms\nThali: A meal consisting of a platter with various small bowls containing different dishes, typically served in South Asian countries.\nRabi: A cropping season in India, typically from winter to spring (e.g., wheat, pulses, mustard).\nKharif: A cropping season in India, typically from monsoon to winter (e.g., rice, corn, cotton).\nHeadline retail inflation: The overall inflation rate for consumer prices, including all goods and services, as reported by official statistics.\nDisinflation: A slowdown in the rate of inflation; prices are still rising, but at a slower pace.