Diwali 2026 sweets cost 10-25% more as milk, sugar, dry fruit prices climb

Sweets for Diwali 2026 are costing families noticeably more than last year, traders in two large cities say. In Indore, Madhya Pradesh, sweet and namkeen shops have raised prices by about 10% to 15% compared with last year's festive season, with kaju katli now selling at Rs 1,100 to Rs 1,200 a kilogram against about Rs 900 a year ago, according to a local report in the last week of October 2026. In Hyderabad, a report published on October 25 put the increase at 20% to 25%, with sweets made from dry fruits rising the most. Traders in both cities blame higher costs of sugar, milk products, dry fruits and production. Diwali falls on Sunday, November 8, 2026.

Mithai is at the heart of how Diwali is celebrated. Families buy sweets to offer during Lakshmi Puja, to share with neighbours and relatives, and to give as gifts to friends and colleagues. For many households, the sweet shop bill is one of the biggest single food expenses of the festival, so a 10% to 25% rise is felt directly in the festive budget.

The price rise also shows how closely traditional sweets depend on a few basic ingredients. Many traditional sweets are made from milk solids such as khoya, sugar and ghee, while the costliest varieties, such as kaju katli and badam barfi, depend on cashews and almonds. When any of these becomes more expensive, sweet makers either raise prices, cut their margins, or reduce quality. Traders in Indore say their margins are already under pressure.

That last option is the one food safety officials worry about every festive season. In the weeks before Diwali, demand for khoya, paneer and ghee peaks, and food safety departments in several states have already seized large quantities of adulterated or substandard dairy products this October. Rising prices can increase the temptation to cut corners. For buyers, the safest choice is usually a shop with a valid FSSAI licence or registration displayed, sweets prepared fresh, and clear labels on packed boxes showing the date of manufacture and best-before date.

The festive market is also stretching at the top end. Alongside the everyday box, premium gift hampers are being marketed for gifting, with one brand pricing a box of 30 pista katlis finished in 24-carat gold foil at Rs 21,000. Such boxes are still a small niche, but they show how wide the range of what Indians spend on festival sweets has become.

Short-term: Families will pay more for Diwali sweets this year, and some may buy smaller quantities, choose cheaper milk-based sweets over dry-fruit varieties, or make sweets at home.

Long-term: If input costs stay high, sweet makers may keep prices raised after the festive season, and the gap between premium gift boxes and everyday mithai could widen.

Who is affected: Households buying sweets for Diwali, sweet shop owners and their workers, dairy and dry fruit suppliers, and companies that buy sweets for festive gifting.

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