Sweets and desserts are experiencing higher prices this festive season due to increasing sugar costs and rising demand. Sugar prices have surged significantly year-on-year, contributing to overall food inflation. The festive calendar is expected to drive further demand for sweets and confectionery items. Manufacturers may react by adjusting prices while trying to maintain consumer affordability. Concerns about production due to uneven rainfall could complicate future price trends.

Sweets, candies and desserts are getting costlier during the ongoing festive season, raising the cost of celebrations and gifting for consumers. Higher sugar prices and costs of other key inputs are fuelling the increase, putting pressure on manufacturers as festive demand picks up. Prices are likely to remain elevated in the coming months, with the outlook depending on the pace of fresh sugar supplies and the trajectory of input costs, according to experts. Inflation in sugar, confectionery and desserts surged to 13.8% year-on-year in September, up from 10.9% in August and 3.4% in January, according to the statistics and programme implementation ministry data. Sugar prices shot up 29.8% year-on-year in September from 24.3% in August. "The rise reflects higher input costs across key raw materials, including sugar," said Poonam Upadhyay, director, Crisil Ratings. Festive demand has added to these pressures, she added. Advt

5%, up from 6% in the previous month. 4% from 3%. Higher sugar prices, along with rising edible oil and fuel costs, are driving inflation across these categories, said Devendra Pant, chief economist at Ind-Ra. The increase in sugar prices has been driven by lower production, monsoon-related factors and strong demand, he added.

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