Onion Prices Hike May Increase Cost of Thali

Amid onion prices skyrocketing to over Rs 80 per kg, a domestic rating agency on Monday warned that the cost of a typical thali or a meal is expected to inch up in November. In October, the higher onion prices had capped a decline in the thali prices as the prices of the politically sensitive commodity increased to Rs 40 per kilogramme from Rs 34 per kg in the second half of the month.

Potato and Tomato Prices Decline

However, a decline in the prices of potato and tomato helped in the price of a vegetarian thali coming at Rs 27.5, which was 5 per cent lower compared to that of year-ago period and 1 per cent lower than the preceding month of September, the agency said. Potato prices declined by 21 per cent while tomato was down 38 per cent, which helped the overall situation, the agency said.

Non-Vegetarian Thali Prices Decline

The rate of a non-vegetarian thali declined by 7 per cent on a year-on-year basis to Rs 58.4, the agency said, adding that the same was down 3 per cent when compared with the rate in September. The cost of a non-veg thali declined faster as the price of broiler, which has a 50 per cent share in the thali cost, softened at an estimated 5-7 per cent on a high base.

Impact of LPG Price Reduction

The government's decision to reduce the price of LPG cooking gas by Rs 200 to Rs 953 per cylinder also helped, the agency said, adding that the kitchen fuel contributes 14 per cent cost to a veg thali and 8 per cent to a non-veg thali.

The increase in onion prices is likely to have a significant impact on the cost of a typical thali or meal in India. However, the decline in the prices of potato and tomato may help to offset some of the increase. The government's decision to reduce the price of LPG cooking gas may also help to mitigate the impact of the onion price hike.