Pune: Mithai makers are feeling the pinch of rising milk and sugar prices and passing the cost on to customers ahead of Ganeshotsav
Milk prices have increased by around 16% in the last four months. Peda, for instance, is priced at Rs 750–780 per kg, a hike from the previous Rs 550–560 per kg, Sharma said. Sunil Athwani, director, Karachi Sweet Mart, said the rise in input costs was being driven by multiple factors, including supply disruptions, increased cost of LPG and an “increment of 20 to 25% in the prices of raw materials since Feb.
Sugar, which was earlier priced at around Rs38 per kg, is now being sold at up to Rs76 per kg in some cases,” said Parmanand Sharma, founder and CEO of Mithaiwala. “Prices of almost all sweets have increased by at least 30%,” he added. The rising cost of cooking gas, which has nearly doubled, and recent increase in milk prices supplied by Mumbai cattle owners, which is up by around Rs10 per litre, is adding to the pressure on sweet manufacturers, industry sources said. “If cattle owners in Pune take a similar decision, there could be another 10% increase in milk prices, which would further push up the prices of sweets,” Sharma said. “Sugar prices had also gone up by 50%, but after some govt action they’re 20% higher than what they were at that point in time,” he said. Milk availability has also tightened following the FDA crackdown on spurious milk, Athwani said. “So milk availability has reduced,” he said. Supply disruptions have also affected imported dry fruits, particularly pistachios and almonds,” said Athwani.
The impact is already visible. “All by-products derived from milk, such as ghee and mawa, have also seen a price increase.