Consumers may face steeper prices for Diwali gift hampers this year, as the cost of dry fruits and chocolates has surged. According to an ET study, the average price increased by 14%, driven by supply shortages and rising cocoa prices. Industry leaders worry this inflation could dampen consumer demand during the festive season.
The ‘festival of lights’ is here, but inflation might dim the joy of gifting hampers filled with dry fruits, chocolates, cookies, juices, and snacks.
An Economic Times (ET) study of the top 10 most-gifted products shows that prices have risen by an average of 14% compared to last year. Cashews, almonds, and chocolates like Cadbury Silk, Hershey’s Kisses, and Ferrero Rocher are significantly more expensive, raising concerns among industry executives that these price hikes could curb consumer demand.
Soaring Dry Fruit Prices
Lower supply of almonds, cashews, and Californian pistachios has driven retail prices up. Almond kernels, the most popular grade, saw a 27% price hike, rising from ₹630 per kilogram last year to ₹800 in September, according to the Nuts and Dry Fruits Council of India. Cashews experienced the steepest increase, with the prized W320 variety jumping by 37%, from ₹700 to ₹960 per kilogram.
“Global and domestic cashew crops are around 15% short this year,” said Rahul Kamath, president of the All-India Cashew Association. “For several years, there wasn’t a demand-supply mismatch, and prices remained stable. But now, we’re seeing a correction in line with inflation.”
The price of Californian pistachios also rose by 7%, now at ₹1,100 per kilogram, up from ₹1,030 last year. Despite these increases, industry experts are hopeful for a 10% growth in Diwali sales this year, though it falls short of the typical 20% growth during the festive season.
Chocolates Take a Hit
Chocolates have been heavily affected by rising cocoa prices since August 2022, pushing retail prices up by around 25%. Cadbury Silk, for example, saw its 155-gram bar reduced to 150 grams, while the price increased from ₹175 to ₹185. Similarly, Hershey’s Kisses and Ferrero Rocher have become more expensive.
Despite these inflationary pressures, some relief comes from the packaged snack segment, which has remained largely unchanged. Products like Bikano Aloo Bhujia and Haldiram’s Soan Papdi have kept their prices steady, providing some respite for budget-conscious shoppers.
With inflation affecting gifting costs this Diwali, consumers will need to dig deeper into their pockets, though companies remain hopeful that festive cheer will still drive demand.