Diwali buyers sour as prices soar

MUMBAI: The unusual rise in the prices of essential items like rice, wheat, sugar, oil, fruits and vegetables seems to have dampened the spirit this Diwali for consumers. Although the gold market survived a scare on Dhanteras with several consumers making customary purchases, the same could not be said about sweetmeat market. Sweet shop owners are keeping their fingers crossed until the eve of Diwali. But many fear that demand for sweetmeat is unlikely to pick up now.

Several sweetmeat shops in Mumbai, Navi Mumbai and Thane apprehend a drop in demand this year. This is mainly because of the rise in prices. Sweet prices have climbed significantly this year as the cost of key ingredients like milk, sugar and ghee soared over the last year.

Sugar prices have doubled from Rs 16-20 a kg last year to Rs 30-35 a kg this year. Ghee and milk prices have gone up by 20% to 30% since last year. ���Sales have been 30% lower this year as higher raw material cost has also pushed up the price of all varieties of sweets,��� says the owner of a large sweet shop in Vashi, Navi Mumbai.

Further, things turned worse after news of the seizure of adulterated mawa broke out, which saw buyers shying away from sweetmeats.

The loss of sweet shops was the gain of dry fruit sellers as the prohibitive prices of sweetmeats forced buyers to look for alternatives like dry fruits. Sales of dry fruits like pistachio, almond, resins were in good demand, said a spokesperson of Bombay Dry Fruit Merchants��� Association. ���The demand for dry fruits increased considerably since Ramadan despite a 5-15% increase in imports of dry fruit since last year, he added.

The positive trend was also shared by fireworks dealers. Despite an anti-cracker campaign and a jump in the prices of ���hawais���, ���anars��� and ���atom bombs���, sales of fireworks were there are few takers for them, claim fireworks dealers. ���Sale of firecrackers maybe 40% less compared to last year. With a day left for Diwali, there is a good demand for non-cracker items, while sales of crackers are yet to pick up,��� says Sunil Jadhav of New Bombay Fataka Mart.

People now prefer fireworks that emit colourful lights rather than a loud sound and sales of these items have gone up substantially, he claims.

Stringent checks by police on unauthorised sale of firecrackers, strict court orders banning bursting of crackers after midnight and widespread anti-cracker campaigns seem to be the primary reasons for the drop in sales, says a dealer at Mohammed Ali Road.

Indeed, fireworks and dry fruit dealers are working overtime to cater the increased demand.