High tomato, LPG costs keep household meal bills elevated: Report

New Delhi, India Jul 8, 2026 ALN: New Delhi: Household food expenses are likely to remain under pressure in the near term as higher prices of tomato, vegetable oil, and cooking gas continue to offset relief from lower potato prices, according to Crisil Intelligence's latest 'Roti Rice Rate' report.

The report stated that the cost of preparing a vegetarian thali at home rose 5 percent year-on-year in June, while the cost of a non-vegetarian thali increased 6 percent year-on-year, driven mainly by higher prices of tomato, onion, vegetable oil, and liquefied petroleum gas (LPG).

According to Crisil, tomato prices increased 31 percent year-on-year after delayed and lower summer crop planting caused by high temperatures in February and March. Vegetable oil and LPG prices also rose 10 percent year-on-year each due to supply disruptions linked to the conflict in West Asia, while onion prices edged up as higher-priced stored rabi stocks entered the market. The increase in food costs was partly offset by a 14 percent decline in potato prices following fresh rabi arrivals.

For non-vegetarian meals, the report indicated that higher broiler prices also added to household expenses, accounting for about 50 percent of the cost, due to a tighter broiler supply. Chicken prices were estimated to have risen 7 percent year-on-year because extreme summer heat affected poultry supply by increasing bird mortality, reducing weight gain, and discouraging fresh chick placements.

On a month-on-month basis, the cost of vegetarian and non-vegetarian thalis rose 4 percent and 3 percent, respectively, in June as tomato, onion, and potato prices moved higher compared with May.

The report implies that consumers may continue to face elevated food bills if prices of key inputs such as tomatoes, edible oils, and cooking gas remain firm. However, continued arrivals of seasonal crops and an improvement in vegetable supplies could help moderate some of the pressure on household budgets in the coming months. For consumers, the trajectory of vegetable prices and global energy markets will remain key factors influencing the cost of preparing meals at home.

The rising prices of essential food items, particularly tomatoes, have significant implications not only for household budgets but also for overall inflation rates in the country. Tomatoes are a staple ingredient in many Indian households, used in a variety of dishes, and their price volatility can have a cascading effect on the cost of other food items. When the price of tomatoes spikes, it can lead to increased production costs for restaurants and food vendors, which may ultimately be passed on to consumers in the form of higher menu prices.

The Crisil report highlights the complex interplay between agricultural production, climate conditions, and market dynamics. The delayed planting of summer crops due to extreme weather conditions is a reminder of the vulnerabilities in the agricultural sector, which is heavily reliant on seasonal patterns. The impact of climate change is becoming increasingly evident, with erratic weather patterns affecting crop yields and, consequently, food prices.

In addition to climate factors, geopolitical events also play a crucial role in shaping food prices. The report mentions supply disruptions linked to conflicts in West Asia, which can affect global oil prices and, consequently, the cost of cooking gas. India, being a major importer of crude oil and LPG, is particularly sensitive to fluctuations in global energy markets. Any increase in energy prices can lead to higher transportation and production costs, further exacerbating food inflation.

The decline in potato prices, while offering some relief to consumers, may not be sufficient to offset the overall increase in food costs. Potatoes are often considered a staple food in India and are used in a wide range of dishes. The seasonal arrivals of fresh rabi potatoes have helped to lower prices, but the extent to which this can alleviate the burden of rising costs for other essential items remains to be seen.

As consumers navigate these rising costs, many may seek alternatives to traditional ingredients or adjust their meal planning to accommodate budget constraints. This shift could lead to changes in dietary patterns, with some households opting for less expensive vegetables or proteins. Such changes can have long-term implications for nutrition and health, particularly in a country where food security and dietary diversity are critical concerns.

Moreover, the sustained increase in food prices could prompt policymakers to take action. The government may need to consider measures to stabilize food prices, such as increasing support for farmers, enhancing supply chain efficiencies, or implementing price controls on essential commodities. Such interventions could help mitigate the impact of rising food costs on consumers and ensure that basic nutritional needs are met.

In conclusion, the Crisil report underscores the challenges facing households in managing food expenses amidst rising prices of key ingredients. The interplay of climate conditions, geopolitical factors, and market dynamics will continue to shape the food landscape in India. As consumers adapt to these changes, the focus will remain on finding ways to maintain affordable access to nutritious meals while navigating the complexities of the food .

Understanding the broader implications of these rising prices is crucial for various stakeholders, including consumers, policymakers, and industry players. For consumers, the immediate concern is the affordability of essential food items, which directly impacts their daily lives and overall well-being. As they adjust to the new reality of higher food costs, many may prioritize budgeting and meal planning strategies that emphasize cost-effective choices while still aiming to maintain nutritional balance.

For policymakers, the challenge lies in addressing the root causes of food price inflation while ensuring that interventions do not disrupt market dynamics or disincentivize agricultural production. Effective policies may involve investing in infrastructure improvements, supporting sustainable agricultural practices, and fostering resilience against climate change impacts. By taking a proactive approach, the government can help stabilize food prices and support both consumers and farmers.

In the agricultural sector, producers are grappling with the dual pressures of fluctuating input costs and unpredictable weather patterns. The current situation may encourage farmers to explore diversification strategies or adopt innovative farming techniques that can enhance productivity and reduce vulnerability to climate-related shocks. By fostering a more resilient agricultural system, stakeholders can work together to mitigate the impacts of rising food prices.

Ultimately, the Crisil report serves as a call to action for all parties involved in the food supply chain. The interconnectedness of agricultural production, market dynamics, and consumer behavior highlights the need for collaborative efforts to ensure food security and affordability. As the situation evolves, ongoing monitoring and adaptive strategies will be essential to navigate the complexities of the food and safeguard the well-being of households across the nation.