Mithai Prices Set to Rise 10-15% Ahead of Ganpati, Navratri & Diwali; Sugar, Milk Costs Hit Sweets

Indian consumers could end up paying more for their favourite mithai this festive season as sweetmakers prepare for a possible 10-15% increase in retail prices. The expected hike comes at a time when festive demand is beginning to pick up, with households and businesses preparing for Ganpati, Navratri and Diwali celebrations.

Sweetmakers are facing rising input costs across several key ingredients, including sugar, milk, ghee, dry fruits and fuel. Industry participants say the combination of higher raw material and operating costs is making it increasingly difficult for retailers to absorb the additional burden.

Sugar has emerged as one of the biggest concerns for the sweets industry. Retail sugar prices have crossed Rs 65 per kg in some Maharashtra markets, adding to production costs just as confectioners begin stocking up for the festive period.

Industry participants have reported that sugar prices have increased by more than 35% in recent weeks amid tighter supplies and stronger seasonal demand. However, the government has indicated that ex-mill sugar prices have declined and that the reduction could gradually reach retail markets.

The pressure on sweet prices is not limited to sugar. Milk, ghee, paneer, dry fruits, edible oils, packaging, electricity and fuel are also important components of the overall cost of making and selling sweets.

When several of these inputs become more expensive at the same time, sweetmakers have limited room to protect their margins without increasing retail prices.

Sugar Supply Remains Key Concern

The pressure on sugar availability has been linked to lower-than-expected production, estimated at around 306 lakh tonnes, along with the diversion of nearly 30 lakh tonnes of sugar towards ethanol production.

The diversion of sugar for ethanol supports the country's fuel-blending objectives, but it can reduce the quantity available for direct food consumption when overall sugar production remains under pressure.

For sweet manufacturers, the timing is particularly challenging. Festive production needs to begin before the peak buying period, meaning businesses often have to purchase large quantities of ingredients in advance. Any increase in input prices can therefore quickly feed into the cost of finished products.

Milk Price Hike Adds To Pressure On Mithai Makers

Milk prices have also added to the industry's concerns, particularly in Maharashtra. The Mumbai Milk Producers Association increased loose milk prices by Rs 9 per litre from September 1.

The increase has a direct impact on milk-based sweets such as peda, barfi, kalakand, basundi and rasmalai. Higher milk costs can also raise expenses for products that use ghee and paneer as major ingredients. Milk prices have reportedly increased in other states as well, including Tamil Nadu, Karnataka and Gujarat, adding to the broader cost pressure faced by the sweets industry.

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