3 weeks ago
Rising Costs Push Pune Sweets and Modak Prices Higher
Sweet sellers in Pune are paying more for the ingredients used to make sweets and modaks.
Sugar, milk, dry fruits, coconut and other items have become more expensive.
Cooking gas has also added to their costs.
Many established shops are raising prices to cover part of the increase.
Small home businesses cannot always raise prices because customers may choose cheaper sweets elsewhere.
This means their profits become smaller.
One seller said modak prices rose from about Rs 30-35 to Rs 40-45 each.
Another seller said Kaju Katli rose to about Rs 1,400 per kilogram.
Sellers are concerned that weather conditions and supply problems could cause prices to remain high.
Sweet prices in Pune have risen by about 10-20% as sugar, milk, dry-fruit and other input costs increase.
Kaju Katli at one Nigdi shop has risen from around Rs 1,000 to Rs 1,400 per kilogram in four to five months.
Small home-based modak sellers face higher costs because they generally buy ingredients from retail outlets rather than in bulk.
Homemade modak prices have increased from roughly Rs 30-35 to Rs 40-45 per piece, while sellers say their profit margins are shrinking.
Sellers warn that rainfall conditions, cooking-gas costs and intermittent milk-supply disruptions could keep prices elevated.
- Who
- Sweet shops and home-based modak sellers in Pune, including Kaka Halwai Foods Pvt Ltd and sellers in Nigdi.
- What
- Sweet prices have increased by about 10-20%, while small modak sellers are dealing with shrinking profit margins.
- Where
- Pune, including Nigdi.
- When
- During Ganeshotsav; one seller reported that Kaju Katli prices rose over the past four to five months.
- Why
- Higher prices for sugar, milk, dry fruits, coconut, jaggery, cooking gas and other inputs are raising production costs.
Consumers and Home Sellers
Established Sweet Shops
Passing on higher costs
Consumers and Home Sellers
Home-based sellers say they cannot fully raise prices because customers compare them with larger shops, leaving their profits smaller.
Established Sweet Shops
Established shops say they have little choice but to pass some higher input costs on to consumers.
Purchasing power
Consumers and Home Sellers
Small sellers generally buy ingredients from retail outlets as orders arrive, resulting in higher costs.
Established Sweet Shops
Larger shops can use contracts and bulk purchasing for ingredients such as milk, sugar, coconut and jaggery, potentially reducing the impact of price increases.
Effect on demand
Consumers and Home Sellers
Home-based sellers face customer price sensitivity and weaker order levels; one seller reported receiving only three Ganeshotsav orders.
Established Sweet Shops
A shop owner said even small price increases can reduce sales, and reported a slight seasonal decline after Kaju Katli became more expensive.
Key facts
- Reported sweet-price increase
- About 10-20% across several categories
- Kaju Katli price
- Rose from around Rs 1,000 to Rs 1,400 per kilogram at one Nigdi shop
- Homemade modak price
- Rose from about Rs 30-35 to Rs 40-45 per piece, depending on size
- Sugar price
- Around Rs 70-75 per kilogram, according to a sweet shop owner
- Coconut price
- Around Rs 60, according to a home-based modak seller
- Sales impact
- A seller reported a slight decline in sales, while another had received three Ganeshotsav orders
- Potential future pressure
- Reduced rainfall, higher cooking-gas costs and intermittent milk-supply disruptions could keep costs elevated
Quotes
Anushka Tapshalkar
Home-based modak seller in Nigdi
“Even our profits have shrunk because we cannot completely pass on the increase to consumers. Some customers compare our prices with large shops where modaks are available for around Rs 25 per piece, but they do not understand the economics behind it.”
indianexpress.com
“Customers are price-sensitive, and even a slight increase in prices affects sales. Due to the rise in raw material costs, prices of sweets across the milk and dry-fruit categories have increased.”
indianexpress.com
Sources
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