As India gears up for Diwali, the festive sparkle of mithai is losing some of its shine. The price of silver varakh — the delicate foil that gives sweets like kaju katli and Gulab jamun their celebratory gleam — has surged to nearly ₹1.9 lakh per kg in the spot market, creating fresh headaches for sweet makers already juggling rising input costs.
Even with the recent GST reduction on sweets to 5%, mithai manufacturers are struggling to balance tradition, presentation, and profitability. While few are willing to pass on the burden to consumers during the festive rush, many are resorting to creative cost controls.
Mumbai’s iconic Parsi Dairy Farm has chosen to hold prices steady despite a 10–15% jump in the cost of silver leaf. “We don’t want to disappoint our customers this Diwali, so we’re absorbing the increase,” said Bakhtyar K. Irani, Managing Director of the dairy.
In Delhi, Khoya Mithai founder Sid Mathur said the brand is cutting back on silver use by redesigning certain sweets. “We’ve adjusted the presentation in a few products to maintain aesthetics while using less varakh,” he explained.
Meanwhile, Agra’s 200-year-old Bhagat Halwai reported that silver leaf prices have risen from ₹5 to ₹8 per sheet compared to last Diwali. “The GST cut helps, but volatile commodity prices continue to hurt margins,” said owner Shivam Bhagat.
With input costs climbing and festive demand peaking, India’s mithai industry is striving to keep its sheen — even if the shimmer costs a little more this season.