Thalinomics replaces Modinomics

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Tribune News Service

New Delhi, January 31

While ‘Modinomics’ is stuttering because of the below-expectation economic growth rate and ‘Pakodanomics’ has been derided as unflattering to job-seekers, the Economic Survey has introduced the concept of ‘Thalinomics’ whose non-vegetarian and vegetarian versions have both become more affordable for the people ever since the BJP government assumed power in 2014.

Both across India and the four regions — North, South, East and West —the Survey found that the absolute prices of a vegetarian ‘thali’ had decreased significantly since 2015-16, though the price has increased during 2019-20.

After 2015-16, the average household gained Rs 10,887 on average per year from the moderation in prices in the case of vegetarian ‘thali’. Using the annual earnings of an average industrial worker, the Survey found that affordability of vegetarian ‘thalis’ improved 29 per cent from 2006-07 to 2019-20 while that for non-vegetarian ‘thalis’ improved by 18 per cent.

Explaining the reason for propounding this concept, the Survey explained that food is not just an end in itself but also an essential ingredient in the growth of human capital and, therefore, important for the national wealth creation.

Moreover, ‘Zero Hunger’ has been agreed upon by nations of the world as a Sustainable Development Goal (SDG) which is directly related to other SDGs such as poverty eradication, quality education, gender equality, responsible consumption and climate action.

The Survey looked at the evolution of prices of food items through the lens

of ‘thalis’ between 2006-07 and 2019-20 (April-

October, 2019).

It found that there has been moderation in the prices of vegetarian ‘thali’ since 2015-16, though ‘thali’prices have increased this year due to sharp downward turn in the prices of vegetables and dal in contrast to the previous trend of increasing prices.

In terms of the inflation in ‘thali’ prices and all components, there is a distinct declining trend during the period under review. Affordability of ‘thalis’ vis-à-vis a day’s pay of a worker has improved over time, indicating improved welfare of the common person.

‘Thalinomics’ is an attempt to quantify what a common person pays for a ‘thali’ across India. Prices data from the Consumer Price Index for Industrial Workers (CPI-IW) for around 80 centres in 25 States/UTs from April 2006 to October 2019 have been used for the analysis. 2015-16 can be considered as a year when there was a shift in the dynamics of thali prices. Many reform measures have been introduced since 2014-15 to enhance the productivity of the agricultural sector as well as efficiency and effectiveness of agricultural markets for better and more transparent price discovery.

‘Thalis’ lighter on pocket

• As per the Economic Survey, in India, affordability of vegetarian ‘thalis’ improved more compared to non-vegetarian ‘thalis’ in last 13 years

How it’s calculated

• Affordability of ‘thalis’ is calculated with regard to a day’s pay of a worker. Affordability of ‘thalis’ vis-a-vis a day’s pay of a worker has improved over time. Using the dietary guidelines for Indians, the price of ‘thalis’ are constructed
• Price data from the Consumer Price Index for industrial workers for around 80 centres in 25 states and Union Territories from April 2006 to October 2019 has been used for the study