Higher cooking fuel prices: Veg, non-veg thali costs spike in April
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New Delhi: The cost of preparing both vegetarian and non-vegetarian thalis at home increased 2 per cent year-on-year in April, mainly due to a sharp rise in tomato prices and higher cooking fuel costs, according to the latest Roti Rice Rate (RRR) report released by Crisil Intelligence, IANS reported.
The report noted that tomato prices jumped 38 per cent compared to the same period last year following lower production caused by a reduction in acreage across southern states.
At the same time, prices of vegetable oil and liquefied petroleum gas (LPG) cylinders rose 7 per cent each amid global supply-related pressures.
“The cost of both home-cooked vegetarian and non-vegetarian thalis rose 2 per cent on-year in April as tomato, vegetable oil and LPG cylinders became expensive,” said Pushan Sharma, Crisil Intelligence.
Crisil warned that tomato prices could remain elevated in the coming months and may rise further during July and August.
The report attributed the expected pressure to lower summer sowing, weak price sentiment among farmers and the possibility of heatwaves affecting key tomato-growing regions in northern India.
The report also highlighted concerns over onion and potato prices. Onion prices are expected to remain high due to an estimated 4-6 per cent decline in rabi crop production this year.
Potato prices may also move upward as the harvesting season concludes and stored supplies from cold storage start entering the market.
According to the report, vegetable oil prices are likely to stay firm in the near term because of continued geopolitical uncertainty in West Asia, which has impacted global supply conditions.
However, the report offered some relief on pulses' prices. Crisil said pulses are expected to remain soft due to adequate supply and subdued demand.
It added that favourable import parity, release of government buffer stocks and steady domestic arrivals are likely to keep markets well supplied despite lower domestic production levels.