India’s traditional sweets sector is feeling the pinch of a sharp rally in silver prices, with soaring costs of edible silver foil—known as vark—adding pressure to mithai makers ahead of the festive and wedding seasons.
Silver prices have climbed to record highs in recent months, pushing up the cost of vark, a decorative ingredient widely used on premium Indian sweets such as kaju katli, barfi and peda. Industry players say the spike is squeezing margins, as passing on the full increase to consumers remains difficult in a price-sensitive market.
Sweet manufacturers and halwais note that vark, though used in small quantities, is critical to the visual appeal and perceived premium value of mithai. With silver rates rising sharply, the cost of applying vark has gone up significantly, particularly affecting high-volume festive sales.
Several mithai makers are now exploring alternatives, including reducing the use of silver foil, switching to thinner layers, or offering non-vark variants of popular sweets. However, traders say consumer expectations—especially during festivals such as Diwali and weddings—make it hard to eliminate vark entirely.
The surge in silver prices comes at a time when the sweets industry is already grappling with higher input costs for sugar, dry fruits, dairy and packaging. While premium sweet brands may absorb part of the increase, smaller and regional players are likely to feel the strain more acutely.
Industry executives warn that if silver prices remain elevated, mithai prices could see selective hikes, or consumers may see subtle changes in product presentation. For now, however, silver’s rally has brought little cheer to sweetmakers—leaving them with rising costs and no silver lining.