Sugar price hikes drive up costs for Indian sweets

Rising sugar prices are driving up the cost of sweets across India, significantly impacting regional specialties like Agra’s Petha and Bikaner’s Rasgulla. In Agra, the price of plain Petha has increased from approximately 120 rupees per kilogram to 150 rupees per kilogram due to a sudden rise in sugar costs of 20 to 25 rupees per kilogram.

In Bikaner, manufacturers report that sugar prices have surged from 40 rupees to over 70 rupees per kilogram. This, combined with the rising costs of milk, mawa, and gas, is expected to lead to a 15% to 20% increase in the prices of various sweets.

Traders in both regions note that while demand typically rises during the festive season, the increased production costs are creating a dilemma: raising prices may deter customers, while maintaining current prices reduces profit margins. Some merchants have also raised concerns regarding potential hoarding in the market contributing to the price volatility.