THIRUVANANTHAPURAM: Taking a bite of that tasty unniyappam or crispy achappam is likely to burn a bigger hole in your pocket.
Keralam’s traditional snack and bakery industry is bracing for shock as surge in prices of sugar, eggs, cornflour and other key ingredients threatens to drive up the cost of local delicacies like unniyappam, halwa and achappam as well as confectionery like cakes, biscuits, pastries and sweets.
With demand for snacks and sweets typically rising during festive season, small bakeries and traditional snack makers, who operate on relatively thin margins, say they are finding it difficult to absorb the rise in raw material prices without passing at least part of the burden on to consumers.
“Sugar prices have shot up by 10-15%, and cornflour, for which we rely entirely on other states, has seen a 10-20% hike. On end products, a minimum 10% price rise is inevitable,” said Khaled K, a baker in Kozhikode. Egg prices have added to the pressure.
On average, sugar and cornflour prices per kg have gone up to Rs 75 and Rs 85, respectively. Eggs cost Rs 8 a piece.
The price escalation is also raising concerns about the quality of ingredients being used. “Many are turning to artificial flavours and substandard substitutes. For those of us committed to quality and genuine products, standing ground without raising prices has become impossible,” Khaled said.
Vijesh Viswanath, owner of a popular bakery chain in Kochi, said small bakers have been severely impacted by the price rise. “There has been a 40% rise in egg prices from last year, while sugar prices have gone up by almost Rs 12-13 per kg since last month. With Diwali and Christmas coming up, the price escalation is a major issue that heavily impacts our profits,” he said.
Union govt’s E20 policy blamed for rising costs
Biju Prem Shankar, state general secretary, Kerala Bakers Association, said small and local bakers cannot revise retail prices every time input costs fluctuate.
“Unlike large manufacturers, we produce fresh items daily and work on fixed-price commitments, leaving us no choice but to absorb losses until it becomes unviable to operate. As prices of essential commodities surge, household purchasing power declines, prompting consumers to cut back on bakery items and traditional snacks first,” Biju said, adding that the association plans to take a final call on the price hike in a few days.
Traders blamed the Union government’s E20 policy for the rising costs. “When key crops like sugarcane and corn are diverted to produce ethanol for E20 fuel blending, it triggers a crisis across the food ecosystem.
The policy is directly inflating production costs for bakery and food industries. Telling citizens to consume less sugar misses the point entirely; even if they don’t buy sugar, these inflated costs are reflected in every basic food item they buy,” said S S Manoj, state president, Kerala Vyapari Vyavasayi Ekopana Samiti.
