Sweets Cost Affected By Hike In Sugar Rates

Due to the increase in cost of sugar from Rs.20 per kg to almost Rs.40 per kg the costing of sweets is rising. The cost of sugar which shows no sign of coming down has been the same for more than three weeks now.

Initially the sweet shop owners decided not to hike rates believing that the rise in price was momentary. But since the price angle (of sugar) didn’t show signs of coming down, the production cost was visibly getting costlier. Many of the shops have increased the costs by Rs.20 owing to the rate of sugar which is an important raw material in making sweets. If you adored this write-up and you would such as to obtain additional facts relating to Horing kindly check out the webpage. The shop owners are not only affected on the price index but are also facing problems from the supply channel of the raw materials. Many suppliers have been crying foul and exclaiming that the sugar is scarce in supply and thus the shop owners are usually asked to compromise on supply. The suppliers have been responding only to 3/4th of the supply need owing to shortage in sugar production at the National level. Mr. Deepak the supervisor at Annapurna sweet shop which has been serving sweets in Mulund for 30years now says, “Since the cost of sugar has gone up we had to increase the cost of sweets by almost Rs.20. And then the supply channel is also affected which has led to limited production. We can’t help it because the sweets’ production depends largely on sugar and when the supply is being affected we have to reduce the production index to a certain extent. Moreover, because the cost has gone up consumers prefer to buy half kilogram rather than a kilogram of sweet, so it is also affecting us at the profit level.” More and more stores are resorting to a precautionary angle and are trying to adjust to the present economic catastrophe. The shop owners are not the only one affected due to the price rise but the sweet lovers too have been watching their scale of expenditure. Mrs. Harsha. Vora says, “August was a month full of festivals and usually is the time of the year when we get sweets for offerings or to just celebrate Ganesh Chaturthi or to relish them at the end of Puryushan. But this year the prices of sweets have risen and hence we bought them selectively and also moderately so as to avoid it from being wasted later.” But then are other stores like Yogeshwari which has been offering sweets and Maharastrian specialties since 1973in Mulund and it has not increased prices. When asked why the costs haven’t been affected with the rise in sugar prices Mr. Ranade contended, “We don’t see it a good enough reason to increase prices just as yet, we want to watch the market for sometime and then decide. Besides the customers come and buy as usual.” But Mr. Deepak says, “If some of the shops haven’t increased their prices they will soon do it, because the hike in prices will remain as there is a serious shortage in production of sugar this year.”

Some of the shopkeepers are already structuring their production and costing, while others are going ahead believing their customers’ goodwill. The sweets’ market is going to see more changes and for that one has to keep a close look at the sugar prices. Sugar being a very important raw material will cause drastic changes in the sweets industry as and when the sugar price index shows alterations.

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