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Ludhiana: Sweets to get dearer after hike in milk prices
This is set to burn a hole in the pockets of customers and decrease the demand at a time when the market is already moving through a slump
Already facing tough times due to rising cost of cooking oil, ghee and dry fruits, the hike of ₹2 in milk prices has added to the misery of sweet shop owners.
They say the hike in milk prices will increase the cost of sweets and cheese by around ₹20 per kilogram. This is set to burn a hole in the pockets of customers and decrease the demand at a time when the market is already moving through a slump.
Apart from Verka and Amul, most of the local dairy farmers have also increased the prices of milk by ₹2 per litre under every category. The prices have risen by ₹5 in the last eight months.
Narinderpal Singh, owner of Kays Lovely sweets in Civil Lines and president of Punjab Halwai Association, said, “The sweet shop owners are in a tight situation as prices of all the material, including refined oil, ghee, dry fruits, and kiryana items, have increased in the past. And now, the milk rates have again been increased. Milk is the main raw material used in sweet shops. The prices of LPG cylinders and transportation cost are also increasing. The rate of a refined oil tin (15kg) has increased by over ₹400 in the recent past and is available at around ₹2,600 in the market. With a ₹2 hike in milk price, cost of cheese and khoya will increase by ₹20 and the budget of families will also be disturbed, which will have an impact on our business.”
The association members said that there are around 300 sweet shop owners in the city and the sector has suffered the most during the pandemic as restrictions were imposed on gatherings and weddings did not take place.
The sector has recovered in the past, but the increase in milk prices and other raw material is now taking a toll on the business.
Bipan Jain, owner of Sharman Jain sweets in Ghumar Mandi said, “There is no doubt that the prices of sweets will increase by around ₹20/kg. But customers will show up in the market if the owners maintain quality. It is the effect of inflation and every sector in the society is reeling under it.”
While popular names in the sector continue to cope with the rising costs, small shopkeepers and those running their business on rented accommodations have said to be affected by the inflation at large.
Owner of Darshan Sweets in Field Ganj, Charanjit Singh, said, “We have decided to stop selling milk at our outlet from Wednesday onwards because of the rising prices. Now, we will only deal in sweets. The weaker sections will not be able to buy milk in the coming time if the prices are further increased. Running business is becoming difficult for small shop owners and those operating from rented accommodations as the margins are decreasing due to rising input cost. They will be forced to shut down the business if inflation is not controlled soon. Even in sweets, the price of certain barfi items can increase by ₹40/kg and putting additional burden on customers means low sales.”
‘Prices of cooking oil increasing due to Russia-Ukraine war‘
Narinderpal said the prices of cooking oil are also increasing due the effects of war between Russia and Ukraine in the international market. He said the government should intervene and control the prices of raw materials to save their sector and public from inflation.
Household budget disturbed
One of the residents of Haibowal, Sadhna said that inflation has already disturbed the budget of households, especially in the middle and weaker section of the society.
“The hike in the prices of milk has further added to the woes. At ₹57 per litre, milk is expensive considering that it is a daily need. The government should control the prices of essentials, especially milk, refined oil, and ghee, otherwise it will become difficult for even the middle-class families to run a household,” she added.
Local dairy farmers likely to increase milk rate by ₹5/litre
Citing the rising input cost, dairy farmers in the city said that prices of milk are further expected to increase up to ₹5 per litre in a coming month or two.
Farmers at Haibowal dairy complex have increased the milk prices under different categories by ₹2 from Tuesday, while the Tajpur Road Dairy Complex Association is expected to make the final decision on the same in the coming few days. There are around 450 dairy farmers in Haibowal and 160 in Tajpur Road complex, who supply around 1.5 lakh and 60,000 litres of milk on a daily basis, respectively.
Dairy owners in Haibowal said hike of ₹2 is not enough to save their dairy business, which is plunging into losses due to the rising cost of feed. President of Haibowal Dairy Owners’ Association, Paramjit Singh Bobby said fodder, which was available at around ₹600 per quintal a few months back, is now being sold at ₹1,000 per quintal. “Similarly, prices of grains have almost doubled in the past. Rise in transportation costs is also adding to the price of feed,” he added.
“The prices of milk will increase by ₹5 in a month or so, otherwise it will be very difficult to run a dairy business. The hike will, however, be implemented in phases. Verka is also expected to increase the prices again as dairy farmers, who supply milk to the brand, are unable to continue the business with decreasing margins. We do not wish to put additional burden on the shoulders of customers, but dairy owners will be forced to shut down their businesses if the milk prices are not revised,” Bobby said.
Tuesday onwards, the mix milk (cow and buffalo) at Haibowal complex is available at ₹62 per litre, cow milk at ₹57 and pure buffalo milk at an average of ₹67.
Meanwhile, president of Tajpur Road Dairy Farmers’ Association, DS Oberoi said they haven’t made a decision on price hike. “A meeting of the association will be held in the coming days and we will decide considering the rising input cost and market situation,” he added.