Sugar spike threatens to sour Bengal’s festive season as sweet prices rise

West Bengal’s celebrated sweet industry is feeling the pressure of a sharp rise in sugar prices just as it prepares for its busiest period of the year, with confectioners raising prices of some popular varieties and warning that more revisions could follow if input costs remain elevated.

Sugar, one of the industry’s most important raw materials, has climbed from around Rs 48 a kg to as much as Rs 68-70 in parts of the state. The increase has come at a particularly difficult time for sweet makers, with the festive calendar set to gather pace through September before Durga Puja in October and Kali Puja and Bhai Dooj later in the season.

The pressure is already visible at sweet counters. Rasagolla prices have risen by around Rs 1-2 apiece at some outlets, while Burdwan’s famed Mihidana and Sitabhog have become substantially costlier. Prices of the two varieties have moved from about Rs 240 to Rs 270 a kg, while premium Sitabhog has risen from around Rs 350 to Rs 400 a kg.

Input costs squeeze margins

The problem extends beyond sugar. Sweet makers have also been grappling with higher milk and commercial LPG costs, leaving businesses with the choice of absorbing the increase or passing at least part of it on to consumers.

Sugar can account for roughly 30 per cent of the cost of making sweets, according to industry estimates. The impact becomes more pronounced during the festive season, when production and consumption can multiply as families purchase sweets for celebrations, gifts and religious occasions.

Dhiman Das, director of KC Das, said the company uses around 600 kg of sugar and 3,500 litres of milk under normal circumstances, with consumption rising about threefold during the festive period. The company has so far avoided raising sweet prices but could be forced to reconsider if sugar remains expensive.

Other confectioners are facing a similar dilemma. Industry representatives say steep price increases risk hurting demand precisely when sales normally peak. Some businesses are instead considering reducing the number of varieties offered during Durga Puja to contain costs.

The stakes are particularly high in Bengal, where sweets form an integral part of the festive economy. The state has several GI-tagged varieties, including Banglar Rasogolla, Burdwan Mihidana, Burdwan Sitabhog, Joynagar Moa and Murshidabad Chhanabora.

Why sugar has turned expensive

The surge is part of a wider increase in sugar prices across the country. The Centre’s data show the national average retail price rising from Rs 48.18 a kg on July 20 to Rs 55.70 on August 20.

The government has attributed the increase to a combination of lower-than-expected domestic production, stronger demand ahead of festivals, weather-related damage to sugarcane crops, tightening global supplies and speculative activity and hoarding in parts of the market.

Sugar output for the current season is now expected at around 306 lakh metric tonnes, considerably below the initial estimate of about 343 lakh metric tonnes. Red rot and top borer disease, along with waterlogging caused by excessive rainfall, have affected the sugarcane crop.

International prices have added another layer of pressure. Global sugar prices rose by more than 16 per cent between June 30 and August 20 amid concerns over tightening supplies and weather conditions.

Centre moves to boost supply

The Centre has announced a series of interventions intended to cool prices before festive demand reaches its peak. It has permitted duty-free imports of 10 lakh metric tonnes of raw sugar and introduced tighter stockholding restrictions to curb hoarding and artificial scarcity.

Sugar dealers are subject to a 400-tonne stock limit until November 30, while bulk consumers will be restricted from holding more than 15 days of consumption from September 1. Central and state teams have also been directed to physically verify stocks held by mills.

The government has maintained that sufficient stocks are available to meet domestic requirements until the new crushing season begins. Mills and sugar-producing states have also been advised to start crushing from October 15, a move expected to bring additional supplies into the market during the heart of the festive season.

For Bengal’s sweet makers, however, the immediate concern is what happens at the retail counter. With sugar, milk and fuel costs all putting pressure on margins, businesses face a delicate calculation: absorb the increase and sacrifice profitability, or raise prices and risk consumers cutting back.

As Durga Puja approaches, that equation could determine not only what Bengal pays for its mishti, but also how much variety reaches the festive platter this year.