The cost of preparing both vegetarian and non-vegetarian thalis at home increased by 2% year-on-year in April, as per the latest Roti Rice Rate (RRR) report by Crisil Intelligence. This rise is mainly attributed to a sharp 38% increase in tomato prices and higher costs of cooking fuel. Additionally, vegetable oil and LPG cylinder prices surged by 7% each due to global supply-related pressures.
The report highlighted that the cost of both home-cooked vegetarian and non-vegetarian thalis saw a 2% increase in April, driven by the expensive tomato, vegetable oil, and LPG cylinders. Pushan Sharma from Crisil Intelligence emphasized this price hike.
Crisil Intelligence cautioned that tomato prices might continue to remain high in the upcoming months and could escalate further in July and August. This projection is linked to lower summer sowing, weak price sentiment among farmers, and the potential impact of heatwaves on major tomato-growing regions in northern India.
The report also expressed concerns regarding onion and potato prices. It predicted that onion prices would remain elevated due to an estimated 4-6% decline in rabi crop production this year. Moreover, potato prices are expected to rise as the harvesting season ends and stored supplies from cold storages enter the market.
Vegetable oil prices are anticipated to remain firm in the short term due to geopolitical uncertainties in West Asia affecting global supply conditions. However, the report provided some relief by stating that pulses prices are likely to stay soft, supported by ample supply and subdued demand. Favorable import parity, government buffer stock releases, and steady domestic arrivals are expected to maintain a well-supplied market despite lower domestic production levels.
