The impact of vegetable prices on the cost of home nutrition: Crisil report for July

According to the Roti Rice Rate report by Crisil, the average cost of preparing a vegetarian diet in July was ₹28.1 compared to ₹27.1 in June. The rise in prices for major vegetable crops was driven by seasonal supply constraints during the monsoon period. Tomatoes saw the most significant price increase at 31%, which is linked to a 27% decline in market arrivals. On a month-on-month basis, onion and potato prices rose by 5% and 2% respectively.

Despite the month-on-month increase, year-on-year there is a decrease in prices for key vegetables. The cost of tomatoes fell by 36% over the year (to ₹42 per kg compared to ₹66 last year), onion prices decreased by 36%, and potatoes by 30%. This was influenced by improved production volumes and a favorable base effect. Last year, potatoes became more expensive due to harvest losses caused by plant diseases and adverse weather conditions, while the current growth in onion production ensured a stable supply.

In addition to vegetables, the year-on-year decrease in the cost of a "thali" was influenced by a 14% drop in pulse prices due to good yield performance and sufficient stocks, as well as a 4% decrease in rice prices. Nevertheless, other factors constrained cost reductions: the cost of vegetable oil rose by 20% year-on-year, and the price of LPG cylinders by 6%.

For consumers whose diet includes meat, a significant factor was the decline in the cost of broiler chickens, which account for almost half the price of a non-vegetarian "thali". This figure fell by 12% year-on-year and by 9% month-on-month, which experts attribute to weakened demand during the monsoon period and the Shravan season.

Overall, in a year-on-year comparison, the cost of a vegetarian diet in July was 14% lower than last year's, and a non-vegetarian one was 13% lower, reflecting an overall moderation in food prices compared to the high levels of the previous year.