Non-veg meals become pricier amid Ramadan demand (2024)

The cost of home-cooked vegetarian meals fell for the fourth straight month in March, while that of non-vegetarian meals increased primarily because of higher demand for chicken during Ramadan, according to Crisil.

The cost of a vegetarian plate, or thali, fell 1% to ₹27.3, while non-vegetarian thali became pricier by 2% to ₹54.9 a plate, the rating agency said in its latest monthly report on Thursday.

Year-on-year, though, the cost of a vegetarian meal increased 7%, while that of non-vegetarian thali declined 7%.

A typical vegetarian meal—as per the Crisil report—includes roti, vegetables (onion, tomato and potato), rice, dal, curd and salad. The non-vegetarian version replaces dal with broiler chicken. Despite fluctuating commodity prices, the share of ingredients used for arriving at the prices remains constant.

The average cost of preparing a thali at home is calculated based on input prices prevailing in north, south, east and west India. The monthly change reflects the impact on the common man’s expenditure. The data also reveals the ingredients such as cereals, pulses, broilers, vegetables, spices, edible oil and cooking gas driving the change in the cost of meals.

The cost of vegetarian thalis declined as prices of tomato, which accounts for 9% of the meal cost, fell 2% month-on-month, while prices of onion and rice remained mostly unchanged. In contrast, potato prices rose 6% on month due to crop damage, preventing further decline in thali cost, Crisil said.

The rise in non-vegetarian meal prices was mainly due to a 5% increase in broiler prices, which account for half of the thali's cost. This was because of higher demand amid Ramadan coupled with rising feed cost.

On a yearly basis, however, a 40%, 36% and 22% jump in prices of onion, tomato and potato, respectively, led to a 7% increase in the cost of a vegetarian meal. This is attributed to lower arrivals of onion and potato and low base of last fiscal year for tomatoes. Prices of rice and pulses, contributing 20% to the cost of a vegetarian thali, also rose 14% and 22%, respectively amid lower arrivals.

In contrast, a 16% fall in broiler prices over the year led to a decrease in the cost of non-vegetarian thalis.

Mint earlier reported that chicken prices were on the rise due to robust demand with the onset of Ramadan, exacerbated by rising temperatures and increased input costs affecting production. Agriculture experts said this trend may persist till April.

Cereal prices are expected to stay high for a while until the Rabi harvest arrives in the market, which is expected by the end of March for wheat and April for paddy, Pushan Sharma, director of research, Crisil Market Intelligence and Analytics, told Mint earlier.

Though wheat has started hitting the market and the government procurement is in full swing, the market prices are ruling above the minimum support price. In the Indore mandi, or wholesale market, of Madhya Pradesh, domestic wheat prices were quoted at ₹2,400-2,450 a quintal, against the MSP of ₹2,275, according to spot traders.

Retail food inflation rose to 8.66% in February from 8.3% in the previous month and 6% a year ago.

In the case of tomatoes, prices are expected to inch lower if climatic conditions remain unaltered, as the area under tomato cultivation has seen an uptick this Rabi season.

Although fresh arrivals of rabi onions are likely to keep prices in check for a while, in the long run, prices are seen high as acreage under the crop is estimated to have significantly declined, which will hurt output and crimp supplies, Sharma said.

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Published: 04 Apr 2024, 05:13 PM IST