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
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