Hyderabad, August 24, 2026: Sweet shops, bakeries and catering businesses across Hyderabad are facing increasing pressure as sugar prices have risen sharply just before the upcoming festive season. The price increase has become a concern for businesses preparing for higher demand during Raksha Bandhan and Milad-un-Nabi.
According to sweet-shop owners, retail sugar prices that were around ₹50 per kg about a month ago have climbed to nearly ₹70 per kg. The increase is raising production expenses for businesses that use large quantities of sugar in sweets and traditional festive foods.
Rising Costs Affect Sweet Businesses
Sugar is an essential ingredient in a wide range of Indian sweets and festive preparations. Hyderabad’s sweet shops and caterers are particularly concerned because demand usually increases significantly during festivals.
The higher sugar price is also coming at a time when businesses are already dealing with increased expenses for other raw materials, LPG and diesel. As a result, profit margins are coming under pressure.
For caterers and sweet makers preparing food for Milad-un-Nabi, the impact is especially noticeable because large quantities of sugar are required for dishes such as kheer and puri.
Some businesses have responded by increasing their prices. According to the report, certain caterers, bakeries and sweet shops have raised their prices by approximately ₹20 to ₹40 per kg to compensate for the higher cost of ingredients.
Some Shops Choose Not to Increase Prices
Not every sweet shop in Hyderabad has passed the additional cost on to customers.
Some businesses are choosing to absorb the higher sugar cost by accepting lower profit margins. Managers at some established sweet shops said they are waiting to see whether sugar prices return to normal before deciding whether to revise their prices.
One such outlet in Mehdipatnam said it had not increased prices yet and was instead adjusting its profit margins. Management indicated that prices could be reconsidered if the situation continues for a longer period.
Similarly, Agra Mithai Ghar and Restaurant at Gulzar Houz has not immediately raised prices despite the additional expense. The outlet is expecting strong demand during Raksha Bandhan and is attempting to manage the increased sugar costs internally.
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