1 week ago
Sugar and Onion Prices Force Festive Food Vendors to Adapt
Sugar and onions have become more expensive before the festival season.
This makes it costlier for bakers, caterers and street-food sellers to prepare food.
Some bakers may raise prices or use jaggery instead of sugar.
Food sellers are using less onion in snacks, salads and raita.
One caterer removed onion pakoda from the welcome-snack menu.
Onion supplies have fallen in some growing areas because of poor rainfall and reduced arrivals.
Experts say sugar prices were also affected by lower production, seasonal demand and limited stocks.
The government has allowed sugar imports and increased monitoring to help prices settle.
Vendors are trying to control costs without reducing food quality too much.
Average retail sugar prices rose to ₹55.70 a kg from ₹48.18 on July 20.
Onion prices reached ₹43.53 a kg nationally, up 59 per cent year-on-year.
Bakers are considering higher prices, jaggery and other sweeteners as costs rise.
Vendors and caterers are reducing or removing onion from several festive foods.
The Centre permitted duty-free raw-sugar imports and imposed stock limits to ease pressure.
- Who
- Small food businesses, bakers, caterers, street-food vendors, farmers, market sellers, agricultural experts and the Centre are involved.
- What
- Rising sugar and onion prices are prompting food sellers to change recipes, reduce portions or remove some items.
- Where
- The impact is reported in Hyderabad, Adilabad, Rayalaseema and onion markets including Lasalgaon and Kurnool.
- When
- The changes are occurring as the festival season approaches; the latest cited prices were recorded this week and on Tuesday.
- Why
- Sugar prices reflect lower production, seasonal demand, limited stocks and speculative activity, while onion prices are affected by reduced cultivation and market arrivals.
Vendor and supply concerns
Expert and policy perspectives
How much inflation businesses can absorb
Vendor and supply concerns
Bakers and caterers say rising costs for sugar, butter, oil, nuts, packaging and onions are forcing them to raise prices, change recipes or remove menu items.
Expert and policy perspectives
The reported government measures and expected early sugarcane crushing could help prices stabilise, potentially reducing pressure on businesses.
Main causes of higher sugar prices
Vendor and supply concerns
Food businesses experience the increase as a broad cost problem and are changing ingredients or prices to cope.
Expert and policy perspectives
Dr. V. Ram Naresh Kumar attributed the sugar rise to lower production, seasonal demand, limited stocks and speculative activity, citing rainfall, waterlogging, pests and red rot.
Sugarcane and ethanol diversion
Vendor and supply concerns
The concern is that diverting sugarcane toward ethanol could affect sugar availability and prices.
Expert and policy perspectives
S. Ganesan said the effect should be assessed alongside total sugar production and availability, comparing it with increased maize production and maize-based ethanol.
Key facts
- Sugar retail price
- ₹55.70 a kg this week, up from ₹48.18 on July 20.
- Onion national average
- ₹43.53 a kg on Tuesday, 59 per cent above the price a year earlier.
- Sugar imports
- The Centre allowed duty-free imports of 10 lakh tonnes of raw sugar.
- Sugar measures
- The Centre imposed stock limits and tighter inventory monitoring.
- Hazelnut costs
- Prices rose from about ₹2,000 a kg in 2024 to ₹3,700–4,000.
- Rayalaseema onion cultivation
- Kurnool cultivated 2,400 hectares against a target of 19,000; Nandyal cultivated 251 against 4,580; and Kadapa cultivated 361 against 3,800.
- Adilabad onion prices
- Red onions were reported at ₹50 a kg and white onions at ₹70 a kg.
Quotes
Sindhu Samineni
Owner of cloud bakery Sinful Satiation
“Everything from butter to nuts to oil to packaging has been on the rise. Hazelnuts have gone from about ₹2,000 a kg in 2024 to ₹3,700–4,000 now. As a small business, there’s only so much inflation I can absorb without compromising quality.”
deccanchronicle.com
“I haven’t increased prices even after butter and oil went up. But since sugar also increased now, I will have to slowly raise prices.”
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