New Delhi, Aug. 27 -- As Delhi gears up to celebrate Raksha Bandhan, a sharp rise in sugar prices has left Delhi's sweet shops caught between rising production costs and cautious customers. While the festival has traditionally brought a surge in demand, local sweet sellers in some areas said orders and footfall have fallen by nearly 20 per cent this year as consumers cut back on purchases amid higher prices.
Shopkeepers said the wholesale price of sugar, which was around Rs 5000 per quintal earlier, has climbed to nearly Rs 7,000-7500, pushing up the cost of preparing popular sweets. The increase comes on top of already high prices of milk, paneer, dry fruits, ghee and other ingredients, making it difficult for small outlets to maintain their earlier rates.
"We have been forced to increase prices because our input costs have gone up sharply. But customers are also feeling the pinch. This year, many people are buying smaller quantities or placing fewer orders," said a sweet shop owner in Sangam Vihar.
Another trader in Tughlaqabad said the impact was visible not only at the counter but also in advance orders. "Normally, Raksha Bandhan brings bulk orders from families and offices. This time, orders are down by around 20 per cent. We are also producing less because there is no point making large quantities if the demand is uncertain," he said.
The impact is being felt at the production stage as well. Shopkeepers said a 14-kg LPG cylinder now costs around Rs 2,200, further increasing their operating expenses. Several local sweet
makers said they have reduced production ahead of the festival to avoid wastage amid weaker orders.
"Every ingredient has become expensive, but sugar and LPG have added significantly to our costs. We are producing less this time because orders are lower and we do not want unsold sweets after Raksha Bandhan," said Pankaj, a sweet shop owner in Govindpuri. "Earlier, if we spent Rs 500 on ingredients and preparation, the same quantity can now cost around Rs 700-800. We cannot absorb the entire difference," he added.
Some shops have increased rates by around Rs 20-30 per kg, while others are holding prices steady for the festival to retain customers, despite the squeeze on margins. Sellers said premium varieties such as dry-fruit sweets are particularly affected because of the combined increase in sugar and other ingredients.
For buyers, however, the festival budget has become tighter.
"I usually buy sweets for relatives and neighbours during Raksha Bandhan, but this year I am having to buy less. Prices have increased and there are other festival expenses as well," said Shivam, a resident of Saket.
Another customer at a sweet shop said, "We cannot stop buying sweets during Raksha Bandhan, but instead of buying a large box, we are choosing a smaller one. The prices are definitely affecting how much we purchase."
Traders said they expect demand to pick up around the festival, but are keeping production controlled as they remain uncertain about post-festival sales. For neighbourhood sweet shops, the combination of expensive
ingredients, higher cooking costs and cautious consumers has made this Raksha Bandhan less lucrative than usual.
Published by HT Digital Content Services with permission from Millennium Post.