Rising Costs of Home-Cooked Meals in December

In December, the cost of preparing home-cooked meals experienced a significant increase. The average cost for a vegetarian thali rose by 6% to Rs 31.6 per plate, up from Rs 29.7 the previous year. This was slightly lower than November's rate of Rs 32.7. The increase was primarily due to higher prices of key kitchen staples such as tomatoes and potatoes, as reported by a Crisil unit on Monday.

Impact on Non-Vegetarian Thalis

For non-vegetarian thalis, the cost surged by 12% annually and 3% monthly, reaching Rs 63.3 in December. The primary driver behind this increase was a 20% year-on-year rise in broiler chicken prices, which accounted for half of the total meal cost. This surge in poultry prices was also attributed to a low base from the previous year.

Factors Contributing to the Price Hike

Tomato prices saw a 24% annual increase, reaching Rs 47 per kg in December, while potato prices shot up by 50% to Rs 36 per kg, partly due to a low base effect. Additionally, vegetable oil prices climbed 16% year-on-year, further straining household budgets. This was due to government-imposed import duty hikes. However, an 11% drop in LPG prices year-on-year helped to somewhat temper the impact of rising food costs.

Monthly Price Changes

On a monthly basis, fresh supplies from Madhya Pradesh, Maharashtra, and Gujarat led to a 12% decline in tomato prices in December, reducing the cost of vegetarian thalis by 3%. Additionally, onion prices fell by 12% and potato prices by 2%, further contributing to the reduction in costs between November and December. Meanwhile, non-vegetarian thalis became costlier on a month-on-month basis, with a 3% rise due to increased broiler chicken prices, influenced by a cold wave that weighed down production, increased demand during the festive and wedding season, and higher feed costs.