A mixed trend is visible in the sweets market ahead of Raksha Bandhan. Despite a surge in the cost of ingredients needed for sweets, some shop owners are absorbing the pressure, deferring major price revisions until Diwali. A few others, however, said they had no choice but to increase the rates immediately.
The owners of major sweet shops unanimously said the market is dealing with an increase in prices of key ingredients. The sugar price has increased from ₹45 to ₹66-70 per kg. Silver foil prices surged from ₹800 to ₹1,800 per handful of sheets. Almonds and pistachios saw an increase from ₹700-800 to ₹1,000-1,200 and ₹3,000 to ₹4,000 per kg, respectively. Additionally, the price of commercial LPG cylinders has risen from ₹1,700 to ₹2,800, in addition to increases in the prices of milk, gram flour, refined flour, and ghee.
Despite this, some shops are holding the rates for Rakhi, describing it as a festival associated with emotions where purchases are limited to 1-2 kg while also claiming that imposing a burden on customers would be unfair. Some establishments have already revised rates, others plan a marginal hike now and some others will push the increase to Diwali.
Srajal Gupta of Madhurima Sweets, Gomti Nagar, said they are bearing the cost as long as possible.
{{/usCountry}}Srajal Gupta of Madhurima Sweets, Gomti Nagar, said they are bearing the cost as long as possible.
{{/usCountry}}“The increase in the price is technically impacting our profit ratios, but we generally increase prices once a year, so we are trying not to raise prices as far as possible,” Gupta said.
However, Kanchan Sweets is set to increase rates for Rakhi. “We are planning an increase of ₹20-40 on khoya and chhena sweets and ₹40-80 on dry fruit sweets. Sweets in the ₹1,460-1,500 range will cost ₹1,600. Those priced at ₹2,000 will be available for ₹2,080 due to unavoidable manufacturing costs,” said Gunjan Tolani, owner of Kanchan Sweets, adding they have not yet decided on increasing prices for chocolate hampers.
Shankar Gupta, owner of Radhelal Parampara, said they recently increased the prices of khoya and chhena sweets from ₹800 to ₹840 per kg, kaju katli from ₹1,400 to ₹1,500, and mixed dry fruit sweets from ₹1,700 to ₹1,800. “We kept the prices of laddoos unchanged, with no further hike for Rakhi, but a 10% increase is likely before Diwali,” Shankar Gupta said.
Owners of Chhappan Bhog and Netram Sweets said they will sell their products at old rates, even at a loss for Rakhi, as people already face inflation and purchases are limited. However, they will be forced to raise rates in the coming festive season, they added.
Rajlaxmi Sweets continued the old prices after a ₹40 hike in prices of regular sweets and ₹60 in rates of dry fruit sweets during Holi.
“If the pressure on milk and chhena persists, a maximum ₹40 per kg hike will be made on khoya and ghee sweets (with the price going up to) ₹840 from ₹800, chhena sweets to ₹760 from ₹720 and kaju barfi to ₹1,440 from ₹1,400 — as local clientele limits the scope for higher rates. We are also resisting an increase in prices of chocolates until Diwali,” said Anil Vermani, owner of Rajlaxmi Sweets.
Avinash Tripathi, Uttar Pradesh Adarsh Vyapar Mandal’s sweets section in-charge, said Rakhi being a short festival, customers will not be burdened.
“The rates earlier raised by 15-20% during LPG shortage and later rolled back have been restored. Prices of laddoos have increased by ₹20-30 and kaju barfi by ₹40-60. A further revision is likely for Navratri and Diwali if costs do not ease,” Tripathi said.