Cookies, chocolates and ladoos could cost more this festive season as elevated sugar prices squeeze consumer-goods companies, prompting makers to consider price increases ahead of a key period for sales.
Sugar demand in India usually peaks during the festival season, which runs from late August through January, as consumption of traditional sweets and processed foods rises. This year, however, consumers could be paying more for their festive indulgence as rising sugar and milk costs put pressure on manufacturers and mithai makers. A report by Equirus Securities has said that sugar prices were up 19% year-on-year and 20% from the previous quarter, raising the cost burden for categories such as biscuits, confectionery, malted beverages and carbonated drinks.
