Nagpur: Rising sugar prices may compel major confectioners and sweet makers to increase rates of a wide range of products. An overall increase in input prices is also a contributing factor.Haldiram Snacks Food Private Limited, billed to be the biggest traditional sweet maker having outlets in India and abroad, is considering a price hike. Other brands may follow suit, say sources in the industry.One of the promoters of Haldiram’s told TOI that rising input cost would have to be passed on to the consumer. “It is a tough decision as the entire trade channel has to be taken into confidence and MRPs have to be changed. However, an unprecedented increase in sugar prices is affecting the company’s margins and a price hike is being given serious thought. An upward revision of 25% to 30% in the price is being considered. A decision may be taken if sugar price continues to spiral,” the promoter said.A venture of Haldiram’s scale needs to replenish the sugar stocks at least on a weekly basis. One of the directors of Haldiram’s, Sushil Agrawal, accepted that the high sugar prices were hitting the margins and said the business has been affected by an overall increase in input prices. “Even LPG, diesel and rates of other raw materials have gone up. Sugar is the straw that broke the camel’s back. The stocks are available, but the prices are steep,” he said.The sugar crisis is forcing the management of Ajit Bakery, a 71-year-old company in Nagpur, to consider a price hike. “It’s not just sugar; rates of other raw materials that go into making bakery products have also increased. For example, wheat flour is one of the key inputs which has seen a sharp price hike,” said CEO Vikram Diwadkar.The recent govt order in light of the rising prices mandates industries to store sugar just enough to last only for 15 days. This means faster replenishment has to be done amid rising prices, said a source in the industry.Makers of Sunder, a glucose biscuit, are bracing for a hike if the trends remain unchanged for another 15 days. “At the current price of sugar, it is difficult to maintain the margins,” said Vikram Sethia of Sunder Biscuits, based at Nagpur.Confectioners and sweet makers source sugar through brokers who, in turn, directly deal with sugar mills. Much of the supply to units in Vidarbha comes from the sugar mills in Marathwada and Western Maharashtra, while industries like Haldiram’s get most of their stock from Uttar Pradesh, said a source. Ice-cream makers are breathing easy as it’s off-season due to monsoons, said a source in this industry.
