Business Maharashtra

Pune sweet prices rise 10-20%, squeezing modak sellers' margins

Sweet prices in Pune have risen 10-20 per cent during Ganeshotsav as sugar, milk and dry-fruit costs increase, sellers said. Sachin Gadve, director of Kaka Halwai Foods, cited higher raw material prices. Nigdi shop owner Vijay Chaudhary said Kaju Katli rose from about Rs 1,000 to Rs 1,400 per kg in four to five months, with sugar at Rs 70-75 per kg. Home-based seller Anushka Tapshalkar raised modak prices from Rs 30-35 to Rs 40-45 a piece, against about Rs 25 at large shops.

Written by AI from Indian Express — Cities · not yet reviewed by an editor · Published 16 Sept 2026, 12:06 pm IST

Source

Indian Express — Cities · read the original report ↗

#sweet prices#ganeshotsav#modak#inflation#pune

Desk check · compared with the source

What the desk checked (5)

Sweet prices in Pune have risen 10-20% due to costlier sugar, milk and dry fruits. — Attributed to sellers and to Sachin Gadve of Kaka Halwai Foods Pvt Ltd, who is quoted directly.
Kaju Katli price rose from about Rs 1,000 to Rs 1,400 per kg in four to five months. — Attributed to shop owner Vijay Chaudhary of Nigdi as his own shop's price; figure appears in source.
Sugar currently costs around Rs 70-75 per kg and a coconut around Rs 60. — Sugar figure attributed to Chaudhary, coconut figure to Tapshalkar; no official price data cited.
Homemade modak prices rose from Rs 30-35 to Rs 40-45 per piece, against about Rs 25 at large shops. — Attributed to home-based seller Anushka Tapshalkar; self-reported and internally consistent.
FDA action against adulterated milk products can cause intermittent supply disruptions. — Stated as Chaudhary's opinion; no FDA confirmation or data in source.

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Analysts’ view opinion

AI Economic Analyst

This is less a festive price story than a case study in how input-cost inflation lands unevenly on small players. With sugar, milk, dry fruit and cooking gas costs up, larger sweet chains can cushion themselves through bulk contracts, while home-based sellers buying at retail have no such buffer. The result: prices rise 10-20 per cent for everyone, but the margin squeeze is concentrated at the bottom of the chain.

Rising ingredient costs — sugar at around Rs 70-75 a kg and Kaju Katli moving from about Rs 1,000 to Rs 1,400 a kg per the story — are passing through to consumers at 10-20 per cent.
Bulk procurement and supply contracts for milk, sugar, coconut and jaggery give large shops a scale advantage that translates directly into a pricing edge.
A home-based seller raising modak prices from Rs 30-35 to Rs 40-45 a piece still competes with roughly Rs 25 at big shops, so the unpassed cost is absorbed out of profit.
Sellers describe customers as highly price-sensitive, meaning even modest hikes risk volume loss despite festive demand.
One seller flags that weak rainfall could hit sugarcane and other crops, keeping costs elevated — a pressure that may outlast the festival itself.

What to watch — Whether prices ease once Ganeshotsav demand passes or settle at a higher plateau on crop and milk-supply conditions — that determines how viable small home-based sellers remain.

The story rests on a handful of sellers' accounts and does not establish citywide sales declines, the actual scale of margin erosion, or independently verified reasons for the input-price rise.

Deep dive

Research brief · 8 facts · 3 dates · exam-ready

The brief

Context

Ganeshotsav, the festival built around Lord Ganesha, generates sharp seasonal demand for sweets and especially modaks in Pune. This year sellers say the cost of core inputs — sugar, milk, dry fruits, coconut and cooking gas — has climbed, pushing sweet prices up by 10-20 per cent. Established shops are passing part of the cost to consumers, while home-based modak makers, who buy at retail rather than in bulk, are absorbing more of it and watching margins shrink.

Key facts

Sellers in Pune report sweet prices up 10-20 per cent across categories during Ganeshotsav.
Sachin Gadve, director of Kaka Halwai Foods Pvt Ltd, attributed the 10-20 per cent hike to costlier sugar, milk, dry fruits and other ingredients.
Kaju Katli at Vijay Chaudhary's Nigdi shop rose from about Rs 1,000 to Rs 1,400 per kg over the past four to five months.
Sugar is currently costing around Rs 70-75 per kg, according to Chaudhary.
Home-based seller Anushka Tapshalkar raised modak prices from about Rs 30-35 to Rs 40-45 per piece, depending on size.
Large shops sell modaks at around Rs 25 per piece, against which customers compare home-based sellers' rates.
A single coconut costs around Rs 60, Tapshalkar said; she had received only three orders for this Ganeshotsav so far.
Chaudhary said higher prices contributed to a slight decline in sales this festive season.

Timeline

Past four to five monthsKaju Katli price at a Nigdi shop climbs from around Rs 1,000 to Rs 1,400 per kg.
This year (ongoing)Scarcity of rainfall across most parts of the state raises fears about sugarcane and other crop cultivation.
Current Ganeshotsav seasonSweet prices in Pune up 10-20 per cent; home-based modak sellers report shrinking margins and few orders.

Who has a stake

Established sweet shops (e.g., Kaka Halwai Foods Pvt Ltd) — Face higher input costs but can procure in bulk and pass part of the increase to consumers.
Small home-based modak sellers — Buy ingredients at retail per order, cannot fully pass on costs, and see profit margins shrink.
Consumers in Pune — Price-sensitive festive buyers paying 10-20 per cent more for sweets; some switch to cheaper large-shop modaks.
Food and Drug Administration (FDA) — Its action against adulterated milk and milk products can cause intermittent supply disruptions, adding price pressure.
Sugarcane and crop farmers in Maharashtra — Weak rainfall may hit cultivation, keeping raw material prices elevated.

Why it matters

Festive demand is a major earnings window for India's largely unorganised sweets trade, so an input-cost spike at this moment directly hits small livelihoods. The story shows how bulk-procurement power decides who survives inflation: large shops negotiate contracts, while home-based sellers buy retail and lose margin. It also links farm-level risks — poor rainfall and sugarcane output — to household festive budgets.

UPSC angle

Prelims pointers

Sweet prices in Pune rose 10-20 per cent during Ganeshotsav on costlier sugar, milk and dry fruits.
Sugar quoted at around Rs 70-75 per kg; Kaju Katli up from Rs 1,000 to Rs 1,400 per kg in four to five months.
Home-made modaks priced at Rs 40-45 a piece versus about Rs 25 at large shops.
FDA (Food and Drug Administration) enforcement against adulterated milk products can disrupt supply, per a seller.
Deficient rainfall in Maharashtra flagged as a risk to sugarcane and other crop cultivation.
Modak is the sweet traditionally associated with Ganesh Chaturthi/Ganeshotsav.

Mains framing

The Pune sweets market during Ganeshotsav illustrates how input-cost inflation transmits unevenly through an unorganised value chain. Costlier sugar (Rs 70-75 per kg), milk, dry fruits, coconut (about Rs 60 apiece) and cooking gas have pushed sweet prices up 10-20 per cent; deficient rainfall in the state raises the prospect of weaker sugarcane and crop output, keeping prices elevated. Large firms such as Kaka Halwai Foods can hedge through bulk contracts for milk, sugar, coconut and jaggery and pass on part of the burden, while home-based sellers procure at retail as orders trickle in, cannot price above the roughly Rs 25-a-piece benchmark of big shops, and absorb the squeeze as lost margin — one seller reported only three orders so far. Regulatory action by the FDA against adulterated milk products, though necessary for food safety, can create intermittent supply disruptions that add to volatility. The way forward, on the evidence in the story, lies in what Gadve calls awaited "interventions": stabilising farm supply, and enabling small and home-based producers to access collective or bulk procurement so that they are not the residual bearers of festive-season inflation.

Key terms

Modak: Sweet dumpling, usually of coconut and jaggery, traditionally offered during Ganeshotsav.
Ganeshotsav: The Ganesh Chaturthi festival period that drives peak demand for sweets and modaks.
Kaju Katli: Cashew-based sweet; its price at a Nigdi shop rose from about Rs 1,000 to Rs 1,400 per kg.
Food and Drug Administration (FDA): Regulator whose action against adulterated milk and milk products can cause intermittent supply disruptions.
Bulk procurement contracts: Advance tie-ups for milk, sugar, coconut and jaggery that shield large shops from retail price spikes.

Practice questions

How does input-cost inflation affect large and small food businesses differently? Illustrate with the Pune sweets trade during Ganeshotsav.
Discuss the links between monsoon performance, sugarcane cultivation and consumer food prices in Maharashtra.
Food-safety enforcement can temporarily disrupt supply and raise prices. How should regulators balance safety with market stability?

Grounded only in the source report — figures and dates are the source's, not inferred.

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