Increased Costs of Nut-Based Sweets: This festive season, sweets containing nuts, such as kaju katli, are expected to be significantly more expensive. Over the past four months, the price of cashew nuts has surged by up to 80%, while almonds have seen an increase of more than 15%. These price hikes drive the cost of sweets as the festive season approaches.
Reasons Behind the Price Surge: The main factors contributing to the high prices are decreased imports and increased local consumption. India, being the largest importer and consumer of cashews, is facing limited availability of these nuts in the national market, leading to higher prices domestically. The reduced supply, coupled with strong demand, is the primary reason for the rising costs.
Expected Continued Price Increase: Industry leaders predict that the prices of cashews and almonds may rise by an additional 5-10% as Diwali approaches. Despite these increases, the demand for these nuts and the sweets made from them is expected to remain stable. Although consumers might find purchasing festive treats slightly more expensive, the cultural significance of sharing and enjoying goodies during special occasions is likely to keep demand high.
Impact on Festival Gifting: Gifting sweets and nuts during festivals like Diwali will be more expensive this year. If prices continue to rise, a box of kaju katli or a small assortment of nuts will cost more than in previous years. However, due to their traditional and cultural importance, these items are expected to maintain their demand despite the higher costs.
