Major producers like Amul, Nandini, and Aavin have lifted rates on essential festive baking ingredients such as ghee and butter amid severe supply pinches. Meanwhile, the cost of imported dry fruits has reached historic highs, with pistachios jumping up to 70% and almonds increasing by as much as 40%. These compounding operational expenses, coupled with prior LPG shortages, are squeezing confectioners and accelerating inflation across desserts to 13.8%. Corporate buyers in the automotive, pharmaceutical, and consumer goods sectors are actively downsizing orders in response.
Key points
Festive sweet and hamper prices are climbing by at least 15% due to higher packaging, fue…: Festive sweet and hamper prices are climbing by at least 15% due to higher packaging, fuel, and dairy input expenses.
Corporate gifting demand is softening as pharmaceutical, automotive, and fast-moving cons…: Corporate gifting demand is softening as pharmaceutical, automotive, and fast-moving consumer goods companies reduce order sizes to curb spending.
Key dry fruit imports from Iran and Afghanistan face sustained pressure, raising costs ac…: Key dry fruit imports from Iran and Afghanistan face sustained pressure, raising costs across cashews, almonds, dates, and figs.
Sources checked by our analysis pipeline: 1
The pressure extends beyond mithai counters. From everyday cooking ingredients to LPG used in household kitchens, food preparation has become costlier. India faced LPG supply shortages earlier this year amid the Middle East conflict, adding another layer of pressure on consumers ahead of the festive season.
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Which ingredients are driving up Diwali costs this year?
Recently, dairy majors Amul and Karnataka's Nandini have raised prices amid a seasonal surge in demand, while supply constraints have made some products increasingly difficult to find. Tamil Nadu has also announced a price hike, the first by the state-run dairy cooperative under Chief Minister C Joseph Vijay's government.Sources told TOI that Amul's 1-kg ghee carton now costs Rs 680, up from Rs 630, while its 500-gm pure ghee pouch is priced at Rs 345, compared with Rs 325 earlier. Butter prices have also increased, with the 100-gm pack rising to Rs 66 from Rs 63 and the 500-gm pack to Rs 325 from Rs 310.
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