Jul 08, 2024
UNDERSTANDING THE RISING COST OF FOOD PLATES IN INDIA
Thalinomics refers to the study of the cost of a basic meal, or thali, which includes essential components like rice, pulses, vegetables, and sometimes meat. This metric provides insights into food inflation and the overall cost of living.
RECENT TRENDS IN FOOD PLATE COSTS
Q1: What are the current trends in food plate costs?
A: In June, the cost of both vegetarian and non-vegetarian meals in India rose to six and seven-month highs, respectively. The cost of a vegetarian meal increased by 10% year-on-year, while non-vegetarian meal costs increased by 4% from the previous month.
Q2: What are the main drivers of the price increase?
A: The significant price increases in tomatoes, onions, and potatoes (TOP) are major contributors. Prices surged by 30%, 46%, and 59%, respectively, due to lower arrivals. Additionally, rice and pulses saw price hikes due to agricultural conditions.
Q3: How much did the price of a vegetarian and non-vegetarian meal increase?
A: The cost of a vegetarian meal rose to ₹29.4, the highest in 2024, and a 6% increase from May. Non-vegetarian meal costs reached ₹58, the highest since November.
Q4: What does the CRISIL report indicate about food inflation?
A: The CRISIL Market Intelligence and Analytics report suggests that food inflation likely intensified in June, following the 8.7% inflation rate recorded in April and May.
Q5: What agricultural factors influenced these price changes?
A: Reduced acreage and lower arrivals led to a 13% on-year increase in rice prices. A dry spell during key kharif months affected pulses production, resulting in a 22% price increase.
Q6: What can we expect from the official data?
A: The official retail inflation data for June, due on July 12, is likely to reflect the trends indicated by the CRISIL report, showing continued food inflation.
SRIRAM’s