Sugar Prices Jump to Rs 70 a Kg in Hyderabad Ahead of Festivals

Sweet shops, bakeries, and caterers across Hyderabad, including businesses in Etebar Chowk, Mehdipatnam, and Gulzar Houz, are grappling with severe margin pressure following a sharp spike in sugar prices ahead of Raksha Bandhan and Milad-un-Nabi.

Sugar, which traded at approximately Rs 50 per kg a month ago, has climbed to nearly Rs 70 per kg in the local retail market. Sweet shop owners reported that the steep increase comes alongside rising costs for other essential raw materials, commercial LPG, and diesel, driving up total operational expenditures.

The price surge coincides with rising demand for traditional preparations. During Milad-un-Nabi, commercial caterers and households prepare large batches of kheer and puri, while sweet shops substantially increase output to cater to Raksha Bandhan shoppers.

An owner of a sweet shop at Etebar Chowk noted that significant volumes of sugar are necessary to prepare traditional sweets, including kheer and sweet fillings for puri. In response to the input inflation, several professional caterers, bakeries, and sweet retailers have increased their product prices by Rs 20 to Rs 40 per kg.

However, some outlets have chosen not to transfer the increased expenses to buyers. A manager at Minerva Shop in Mehdipatnam explained that the establishment is absorbing the higher input costs for the time being by cutting profit margins, though future price revisions may follow if raw material rates do not normalize.

At Gulzar Houz, the manager of Agra Mithai Ghar and Restaurant stated that the shop has also maintained its existing price list despite anticipating heavy demand for Raksha Bandhan. The management confirmed that they intend to adjust to the current price environment without enforcing an immediate hike.

Commercial sugar usage varies widely across the city, with individual shops consuming anywhere between five and 100 bags per month based on production capacity. With festival orders set to expand overall consumption, traders and business operators remain concerned that prolonged price increases will further reduce profitability or eventually necessitate broader price hikes.