This is going to burn a hole in customers’ purses and reduce demand at a time when the market is already in a recession.
Apart from Verka and Amul, the majority of local dairy farmers have raised the price of milk by Rs. 2 per litre in all categories.
Already struggling owing to increased prices for cooking oil, ghee, and dried fruits, the Rs. 2 increase in milk prices has added to the suffering of sweet shop owners.
According to them, the increase in milk prices will raise the cost of sweets and cheese by roughly Rs. 20 per kilogramme. This is going to burn a hole in customers’ purses and reduce demand at a time when the market is already in a recession.
Apart from Verka and Amul, the majority of local dairy farmers have raised the price of milk by Rs. 2 per litre in all categories. In the previous eight months, prices have grown by Rs. 5.
“The sweet shop owners are in a hard situation since prices of all the components, including refined oil, ghee, dried fruits, and kiryana products, have escalated in the past,” said Narinderpal Singh, owner of Kays Lovely Sweets in Civil Lines and head of the Punjab Halwai Association. And now the milk prices have been raised once more. Milk is the most common raw ingredient used in confectioneries.
LPG cylinder pricing and shipping expenses are also rising. The price of a refined oil tin (15kg) has risen by about Rs. 400 in recent months, and it is now available on the market for roughly Rs. 2,600. With a Rs. 2 increase in milk price, the cost of cheese and khoya would rise by Rs. 20, and family finances will be disrupted, affecting our company.
According to the members of the association, there are around 300 sweet shop owners in the city, and the sector has suffered the most during the pandemic, since limitations on gatherings were imposed and weddings did not take place.
The sector has recovered in the past, but rising milk and other raw material prices are currently putting a strain on the industry.
According to Bipan Jain, proprietor of Sharman Jain sweets in Ghumar Mandi, “There is no question that sweets prices would rise by roughly Rs. 20/kg. Customers will appear in the market, however, if the proprietors maintain quality. It is the result of inflation, and it is wreaking havoc on every area of society.”
While well-known brands in the industry continue to manage with increased prices, small shops and those who conduct their operations from rented premises are claimed to be harmed by general inflation.
“We have decided to cease selling milk at our shop from Wednesday onwards due to increased pricing,” said Charanjit Singh, proprietor of Darshan Sweets in Field Ganj. We shall now exclusively trade in sweets. If milk costs continue to rise, the poor will be unable to purchase it in the coming months. Running a business is getting more challenging for small shop owners and those who work from rented space, since margins are shrinking owing to increased input prices. If inflation is not brought under control soon, they will be compelled to close their doors. Even in the sweets industry, the price of certain barfi products might rise by 40/kg, inflicting an additional hardship on customers and resulting in lower sales.
As a result of the Russia-Ukraine war, cooking oil costs are rising.
Cooking oil costs are also rising, according to Narinderpal, as a result of the international market consequences of Russia’s and Ukraine’s war. He stated that the government should interfere and limit raw material prices in order to protect their industry and the general population from inflation.
Budgetary Disruption in the Household
Sadhna, a Haibowal resident, stated that inflation has already disrupted household budgets, particularly in the middle and lower classes.
“The increase in milk prices has exacerbated the situation. Milk is pricey at Rs. 57 a litre, despite the fact that it is a daily necessity. The government should regulate the costs of basics, particularly milk, refined oil, and ghee, otherwise it will be impossible for even middle-class families to maintain a home “She said.
Local dairy producers are set to raise their milk prices by Rs. 5 per litre.
Dairy producers in the city have predicted that milk prices could rise by up to Rs. 5 per litre in the next month or two, citing growing input costs.
Farmers at the Haibowal dairy complex raised milk rates in several categories by 2 percent beginning Tuesday, with the Tajpur Road Dairy Complex Association scheduled to make the final decision in the following days. There are around 450 dairy farmers in Haibowal and 160 in the Tajpur Road complex, who produce approximately 1.5 lakh and 60,000 litres of milk daily, respectively.
Dairy proprietors in Haibowal say a 2 increase is insufficient to preserve their dairy company, which is losing money owing to increased feed costs. According to Paramjit Singh Bobby, President of the Haibowal Dairy Owners’ Association, fodder, which was available for roughly Rs. 600 per quintal a few months ago, is now being sold for Rs. 1,000 per quintal. “Similarly, grain prices have nearly doubled in the last two years. The surge in transportation expenses is also increasing the cost of feed “He continued.
“The price of milk will rise by Rs. 5 in a month or so; else, running a dairy business will be extremely tough.” The raise, however, will be implemented in stages. Verka is also anticipated to raise prices again, since dairy farmers that provide the brand’s milk are struggling to sustain the company with shrinking margins. “We do not want to place further difficulties on customers’ shoulders, but dairy operators will be forced to close their doors if milk prices are not reduced,” Bobby stated.
Meanwhile, D.S. Oberoi, president of the Tajpur Road Dairy Farmers’ Association, stated that no decision on the price increase has been taken. “The association will convene in the next days, and we will make a decision based on growing input costs and the market condition,” he continued.