The First Items to Go: Sweets and Premium Foods
When household budgets get tight, the first casualties are often the 'nice-to-haves'. This year, that includes many traditional festive foods. With sugar prices surging by over 20% and cooking oils becoming more expensive, the cost of making or buying
mithai has shot up. As a result, families are cutting back. Instead of large boxes of assorted sweets, many are opting for smaller quantities or forgoing store-bought treats altogether. Gourmet foods, dry fruits, and premium ingredients, usually a staple of festive cooking, are also being left on the shelves as families prioritise essential grains and vegetables. This trend is confirmed by consumer surveys, which show 'gourmet food and gifting' are lower on priority lists for many households this year.
The Soaring Cost of Kitchen Staples
It's not just sweets. The price of everyday essentials is the primary driver of this financial strain. According to government data, retail prices for 41 out of 42 essential commodities have risen over the past year. Onion prices have surged by over 100%, while garlic and ginger have also seen steep increases. Prices for pulses like tur dal, cereals like rice, and various cooking oils have also climbed significantly. These are not discretionary items but the very foundation of daily meals, and their rising cost consumes a larger portion of the family budget. For a typical family of four, essentials like rice, cereals, and pulses can already account for a significant chunk of their monthly grocery bill, leaving little room to absorb such sharp price hikes.
The Domino Effect on Other Festive Spending
When more money is spent on basic food, other festive purchases inevitably suffer. A survey found that overall festive spending by urban households is estimated to fall by 6% this year. While essentials like clothing remain a priority for most, big-ticket items are being postponed. Just 6% of households plan to buy jewellery, a traditional Dhanteras purchase, due to skyrocketing prices for precious metals. Similarly, plans to purchase automobiles, electronics, and home appliances are being scaled back. More than half of Indian households feel their financial situation is worse than a year ago, with the strain being particularly severe in rural areas where food inflation has hit over 8%. This anxiety is forcing a widespread cutback on non-essential spending.
How Families Are Coping and Adapting
Indian families are proving resilient and resourceful in the face of these challenges. Many are adapting their traditions to fit their new financial reality. Some are choosing to make sweets and snacks at home to control costs, even if it means using less expensive ingredients. Others are switching to cheaper varieties of staples like rice or buying smaller pack sizes of products. In some households, there's a conscious decision to have simpler celebrations, focusing on the spirit of the festival rather than the scale of it. Surveys show a strong preference for shopping at local markets rather than online, likely to seek better bargains and avoid extra fees. With nearly a third of urban households planning no discretionary spending at all this season, the focus has shifted from splurging to saving and making do.
