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Diwali is here, but homemaker Sujatha Mani still hasn’t decided what sweets to give her friends and relatives. “I went to a few shops and found that the prices of sweets and dried fruits have shot up. Though Diwali is about giving and sharing, it’s a bit of a shock to see such high prices,” she says.

Prices of almonds, walnuts and cashewnuts have risen by more than 10% this year, taking the cost to between Rs 600 and Rs 1,200 a kg. Oil and ghee prices too have risen by 30% to 40% in the past year, making traditional sweets more expensive.

Branded ghee costs Rs 4,200 for 15kg, while oil costs Rs 2,000 for 15 litres. Large sweet shops like The Grand Sweets and Snacks and Sri Krishna Sweets have raised their prices by 10% to 15%. “While the increased prices will have some impact on demand, people have got used to rising prices,” says G Saravanamahesh, managing director, The Grand Sweets and Snacks. The sweet and savoury chain sold 30 tonnes last season expects to sell 35 tonnes this Diwali.

Grand Sweets is betting on its Diwali gift basket consisting of sweets and savouries. Similarly, Sri Krishna Sweets is hoping its savoury kara sev packs fly off the shelves. “Some sweets like adarasam, ladoo and jangiri are a must during Diwali. People share their love and happiness during Diwali through sweets. So they will not avoid buying sweet though they may buy in lesser quantities,” says M Murali, managing director, Sri Krishna Sweets.

Smaller contractors who depend on orders during Diwali are finding the going tough. “I will not be taking orders as I won’t be able to make profits. Diwali sweets like badusha and jalebi need high quality ghee which can be obtained only by melting good cooking butter. Also, labour costs have gone through the roof and I have to pay Rs 1,300 for a day’s work as opposed to Rs 800 earlier,” says catering contractor N Padmanabhan. “But customers are not willing to pay higher prices.”

Another KK Nagar-based contractor is still working out his pricing strategy. “As a rule, prices of our sweets and savouries have to be lower than the shops. Otherwise, nobody will come to us,” he says.

Some retailers are focusing on attractive packaging to ensure good sales. At Brown Tree, dried fruit packs start from Rs 100. “Prices of dried fruits have risen but people like to gift such boxes because it is perceived as a rich gift,” says Dinesh Mahavir, partner, Brown Tree. During Diwali, 80% of Brown Tree’s sales come from dried fruit packs. Last Diwali, the chain sold 25,000 boxes of dried fruits and is hoping to sell 45,000 this year.

While the sellers aren’t too upset by inflation, the price rise has taken the edge off the sweetness of the season for the customer. “I may give sweets to fewer people this year. I think I’ll restrict my list to just close relatives. Hosting a pre-Diwali dinner at home for friends might be the economical alternative,” says Sudha Mani.

- times of india