A sharp increase in sugar prices is putting pressure on sweet shops, bakeries and caterers in Hyderabad ahead of Raksha Bandhan and Milad-un-Nabi. While some businesses have raised prices, others are absorbing the higher costs to retain customers.
Published Date – 24 August 2026, 06:54 PM
Hyderabad: The sharp rise in sugar prices is squeezing the margins of sweet shops, bakeries and caterers in Hyderabad ahead of Raksha Bandhan and Milad un Nabi, when demand for sweets and traditional preparations is expected to surge.
Sugar, which was selling at around Rs 50 a kg a month ago, is now priced at nearly Rs 70 a kg in the retail market. Sweet shop owners said the increase was adding to their input costs at a time when prices of other essential raw materials, along with LPG and diesel, have also gone up.
The impact is particularly being felt as preparations for Milad un Nabi and Raksha Bandhan gather pace. During Milad un Nabi, households as well as professional caterers prepare kheer and puri, while sweet shops and bakeries step up production.
“A lot of sugar is required for preparing the stuffing for puri and making kheer. With the price rise, professional caterers, bakeries and sweet shops have increased prices by Rs 20 to Rs 40 a kg,” said the owner of a sweet shop at Etebar Chowk.
However, not all establishments have passed on the additional cost to consumers. A manager at Minerva Shop in Mehdipatnam said the outlet had decided to absorb the increase for the time being. “The prices have not increased as of now. We are adjusting by cutting our profits. If the situation does not normalise, a decision will be taken later. So far, there is no hike,” he said.
Similarly, the manager of Agra Mithai Ghar and Restaurant at Gulzar Houz said there was a huge demand for sweets during Raksha Bandhan, but the management had not yet decided to increase prices.
“We have not hiked the prices and are adjusting to the sugar price rise. A huge quantity of sugar is required to make sweets on a large scale during Raksha Bandhan. Somehow, we will adjust with the current price,” he said.
The scale of consumption varies considerably among sweet shops. On average, establishments consume between five and 100 bags of sugar a month, depending on their production capacity. With festive demand expected to increase consumption substantially, shop owners fear that continued high sugar prices could further erode their margins or eventually force them to raise retail prices.
