Festive cheer comes with a heavier price tag this Diwali. Steep increases in the cost of dairy, dry fruits and sugar are squeezing households, sweet makers and corporate gift buyers alike, turning the season’s indulgences into a budgeting exercise.
Dairy leads the climb
The biggest jolt is coming from the staples that go into every laddoo and barfi. Amul has raised ghee and butter prices: its 1-kg ghee carton now costs Rs 680 against Rs 630 earlier, while the 500-gm pouch has moved to Rs 345 from Rs 325. The 100-gm butter pack is now Rs 66 (up from Rs 63) and the 500-gm pack Rs 325 (from Rs 310). Supply is tight as well. Several ghee variants on Amul’s online store, priced between Rs 700 and Rs 740 a litre, including pure and buffalo ghee, are showing as sold out.
In Karnataka, the Bengaluru Milk Union revised rates for Nandini ghee, butter, paneer and Trupti milk from November 4, after the Karnataka Milk Federation’s recent hike in milk and curd prices. A litre of Nandini ghee now costs Rs 850 and a 500-ml pack Rs 425. Salted butter is Rs 90 per 100 gm and Rs 380 per 500 gm, while paneer is priced at Rs 115 for 200 gm and Rs 485 a kg.
Tamil Nadu’s Aavin has followed suit with its first price revision under Chief Minister C Joseph Vijay, raising rates for ghee, butter, curd, lassi, cookies and milk-based sweets. Its 100-ml ghee pack has gone from Rs 80 to Rs 95, and the 200-ml pack from Rs 160 to Rs 180.
Dry fruits hit record highs
Nuts have become a luxury this season. Despite the GST cut in September 2025, dry fruit prices are up by as much as 70% over the past year. Pistachios cost 60–70% more than last Diwali, and Peshawari pistachios, a mithai favourite, have touched a record Rs 4,000 a kg, roughly 40% higher than six months ago. Wholesale in-shell pistachios have jumped nearly 74% to Rs 1,650 a kg. Almonds are 20–40% dearer depending on the variety.
Other items have seen milder increases: cashews are up 5–8%, raisins 2–5%, dates 5–10% and anjeer 5–15%. Importers blame disrupted supplies from Iran and Afghanistan, linked to the US-Iran conflict.
Corporate gifting shrinks
Higher input and packaging costs have pushed up prices of sweets and premium hampers by at least 15%. Companies in pharma, automobiles and FMCG are trimming gift lists and switching to smaller boxes. That’s a blow to sweet makers and packaging firms, which depend heavily on bulk festive orders. Decorative and customised packaging has also become a significant part of the bill.
Inflation widens its grip
Kitchen budgets were already stretched after LPG shortages earlier this year amid the Middle East conflict. Retail food inflation rose to 7.74% in September, lifting headline inflation to 5.54%, close to the RBI’s 6% upper limit. Inflation in sugar, confectionery and desserts climbed to 13.8%, up from 10.9% in August and just 3.4% in January. Sugar alone was 29.8% costlier year-on-year.
RBI Governor Sanjay Malhotra has warned that price pressures are spreading. In August, 37% of items in the consumer basket recorded inflation above 4%, compared with 20% in March.
For many families, this year’s Diwali mithai may arrive in smaller boxes.