Decrease in July food costs for vegetarian and non-vegetarian thalis due to cheaper produce and poultry, but prices rise due to increased oil and LPG costs.
In an unexpected turn of events, the cost of home-cooked vegetarian and non-vegetarian thalis saw a notable decrease in July 2025. The drop was primarily due to a year-on-year decline in prices of key ingredients such as vegetables, broiler chicken, and pulses [2][3][5].
The decline in vegetable prices, particularly tomatoes, onions, and potatoes, played a significant role in this price reduction. Tomato prices dropped by approximately 36%, onion prices by around 36%, and potato prices by about 30%. The sharp fall in tomato prices was attributed to a high base effect (prices were exceptionally high in the previous year) and better production this year. Onion prices declined due to an 18-20% increase in annual output, and potato prices corrected from last year's weather and pest-related spikes [3][5].
Broiler chicken prices also contributed to the decrease, falling about 9% month-on-month in July due to lower demand during the monsoon season and the Shravan month, when a portion of the population avoids meat consumption. This led to a 2% month-on-month reduction in non-vegetarian thali prices, despite a slight month-on-month increase in vegetarian thali costs driven by some vegetable price spikes [1][2][4].
Pulses prices fell 14% year-on-year due to higher production and improved stock availability, while rice prices also declined about 4% year-on-year, supporting lower overall thali costs [2][3][4].
However, there were limiting factors such as a 20% increase in vegetable oil prices and a 6% increase in LPG cylinder prices. These increases moderated the extent of thali cost reductions [2][4].
In a statement, Pushan Sharma, Director of Crisil Intelligence, highlighted that the cost of both veg and non-veg thalis decreased year-on-year in July, defying typical seasonal upticks. He further anticipates thali prices to remain lower on-year in the near term due to a high base of tomato prices and anticipated higher production of pulses [6].
It's worth noting that the cost of a veg thali increased by 4% on a month-on-month basis in July, mainly due to a surge in tomato prices. Conversely, the cost of non-veg thali declined by 2% on a month-on-month basis in July due to the 9% on-month drop in broiler prices [1][2][4].
The cost of a home-cooked veg thali decreased by 14% year-on-year in July, while the cost of home-cooked non-veg thali dropped by 13% year-on-year [2][3][5]. Tomato prices in July 2025 averaged Rs 42 per kg, a 31% decrease from the year-ago period when heavy rains disrupted supplies. Potato and onion prices edged up 2% and 5% on-month, respectively, in July [1].
[1] The Hindu BusinessLine [2] Financial Express [3] LiveMint [4] India Today [5] The Economic Times [6] Crisil Press Release
- The decrease in home-cooked thali costs in July 2025 can be linked to a decline in interest rates, as lower prices of key ingredients such as vegetables, broiler chicken, and pulses might lead to reduced financing costs for farmers and suppliers.
- The finance sector could potentially benefit from the price reductions in the economy, as lower food costs may contribute to increased disposable income for consumers, potentially leading to an uptick in spending in other sectors, such as health-and-wellness, fitness-and-exercise, or weight-management.
- The declining costs might also encourage more people to try their hand at cooking global cuisines, practicing healthy cooking, and exploring new lifestyle trends, thus stimulating the food-and-drink market.
- The impact of the dropped prices on the market could extend to the defi sector, as more households might be willing to invest or borrow funds, considering the increased purchasing power due to lower food expenses.
- Inflation, however, might still be a concern due to a 20% increase in vegetable oil prices and a 6% increase in LPG cylinder prices, which could temporarily offset the thali cost reductions.
- On a positive note, these declining food prices may lead to a more balanced lifestyle, as individuals may have more resources to invest in activities like fitness-and-exercise, weight-management, or health-and-wellness pursuits, which could further improve their overall health status.
- As the demand for home-cooked thalis continues to fall due to the ongoing price decreases, it will be interesting to observe if restaurant owners respond by adjusting their prices or focusing on offering unique dining experiences, thus differentiating themselves in the market.
