RRR: Roti Rice Rate
R. Suryamurthy
Home-cooked vegetarian meals in Delhi offered a slight reprieve to household budgets in February, as the cost of preparing a standard vegetarian thali saw a 1% year-on-year decline. This is according to the latest “Roti Rice Rate” (RRR) report released by Crisil Intelligence.
The dip in prices is primarily attributed to a significant 28% plunge in tomato prices, which fell to ₹23 per kilogram from ₹32 last February, fueled by a 20% surge in market arrivals. Additionally, the cost of a 14.2 kg LPG cylinder in Delhi eased by 11% to ₹803, down from ₹903 a year ago, providing further relief.
However, the same positive trend was not observed for non-vegetarian households. The report indicates that the cost of a non-vegetarian thali in Delhi witnessed an approximate 6% year-on-year increase in February. This rise is largely due to the persistently high prices of broiler chicken.
Crisil’s monthly RRR indicator tracks the average cost of preparing a thali at home across different regions of India, offering valuable insights into the impact of fluctuating ingredient prices on the common person’s household expenses. The report meticulously analyzes the contribution of various components, including cereals, pulses, broilers, vegetables, spices, edible oil, and cooking gas, to the overall cost of a meal.
While vegetable prices, as a whole, trended downwards, a notable 11% year-on-year increase in onion prices partially offset the benefits for vegetarian consumers, highlighting the volatile nature of food costs.
Interestingly, the report also revealed a month-on-month decline of 5% in the cost of preparing both vegetarian and non-vegetarian thalis in February. According to Pushan Sharma, Director – Research at Crisil Intelligence, this monthly decrease for vegetarian thalis was driven by lower prices of key vegetables like onions, tomatoes, and potatoes, while the easing of broiler prices contributed to the reduced cost of non-vegetarian thalis.
Looking ahead, the arrival of fresh rabi crops is anticipated to keep vegetable prices subdued, offering continued relief for vegetarian thali costs. However, the report cautions that temperature conditions in March will be a crucial factor to monitor. Above-normal temperatures could negatively impact the shelf life and quality of stored onions, which are essential for the next six months, as well as the quantity and quality of wheat, the most significant rabi crop.
The “Roti Rice Rate” report underscores the dynamic interplay of agricultural output and energy prices in determining the cost of everyday meals for households across India.