Rise in sugar prices take a toll on West Bengal’s sweet industry ahead of festive season

Sugar prices in West Bengal have risen sharply over the past fortnight, prompting sweet makers to raise prices and warn of further hikes ahead of the festive season.

A sharp increase in the price of sugar over the past fortnight has impacted West Bengal’s sweet industry, with some manufacturers marginally increasing the prices of sweets while others say they might be forced to do so if the trend continues.

A sharp rise in sugar prices is pushing up sweet prices in West Bengal, with manufacturers warning of further hikes ahead of Durga Puja and other festivals.

“The increase in the price of sugar from around ₹48 per kilo to around ₹68 – ₹70 per kilo has already had a negative effect. We have been forced to marginally increase the prices of sweets. The festive season is approaching. If this trend continues, there will be a huge impact,” said Pramod Kumar Singh, secretary of the Burdwan Sitabhog Mihidana Traders Welfare Association.

West Bengal is known for its sweet industry with at least eight sweets having been GI tagged including items like Nalen Gur Sandesh, Rasagolla, Burdwan Mihidana, Burdwan Sitabhog, Bishnupur Motichur laddu, Joynagar Moa, Kamarpukur Sada Bonde and Murshidabad Chhanabora.

Deep Dive

Why have sweet manufacturers in West Bengal increased the prices of sweets ahead of the festive season?

What measures are being taken by the West Bengal government to address the rise in sugar prices?

How might the rise in sugar prices impact the sales of sweets during the festive season in West Bengal?

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“The price of a Rasagolla has been increased by ₹1 – ₹2 per piece. Mihidana and Sitabhog which used to sell around ₹240 per kilo has been increased to ₹270 per kilo. The price of super quality of Sitabhog has been raised from ₹350 per kilo to ₹400 per kilo,” Singh said.

Sweet manufacturers said that sugar accounts for around 30% of the price of a sweet.

“Sugar prices have shot up over the last fortnight. We use around 600 kilos of sugar and around 3500 litres of milk. This consumption increases by around three times during the festive season. We have not increased the prices of sweets yet even though the prices of LPG and milk have shot up. But if the sugar prices don’t come down or rises further, we may be forced to increase the prices of sweets ahead of the festive season,” said Dhiman Das, director of KC Das, a prominent sweet manufacturer in Kolkata.

While Vishwakarma Puja and Ganesh Puja will be celebrated in September, Durga Puja, the biggest festival in Bengal, will be held in October. The festive season starts in October and continues until around Kali Puja and Bhai dooj in November.

“We manufacture around 100 varieties of sweets, and most of them are chhena-based (cottage cheese made from milk). We have not increased the prices so far, keeping in mind the customers. But we are planning to increase the prices marginally after the Raksha bandhan on Friday. The festive season is also coming. If the sweets become too costly, the sale may drop,” said Rahul Chaurasia, co-owner of Ganguram Sweets.

The centre has recent stated that the surge in sugar prices was primarily due to lower-than-expected domestic production, higher festive-season demand, and weather-related crop damage.

On Monday, West Bengal chief minister Suvendu Adhikari told the media at the state secretariat that steps were being taken to curb the rise in sugar price. “We have identified the points where leakages are taking place. We have activated the task forces. We will fix it,” Adhikari said.