- By Akansha Pandey
- Wed, 15 Oct 2025 01:47 PM (IST)
- Source:JND
As Diwali approaches, the prices of gold and silver are soaring, with silver reaching as high as Rs 1.9 lakh per kilogram. This significant price increase is expected to impact the cost of traditional Diwali sweets.
While the festival of Diwali feels incomplete without sweets like Kaju Katli and Gulab Jamun, this year's celebrations might be less sweet for consumers' wallets.
GST Cut Vs. Soaring Silver Prices
Recently, the central government reduced the Goods and Services Tax (GST) on sweets to just 5 per cent, a move that was expected to make them cheaper. However, the sharp rise in silver prices is likely to counteract this benefit and could lead to an increase in the prices of many popular sweets.
The reason for this is the widespread use of edible silver leaf, known as vark, for garnishing many Indian sweets, which enhances both their appearance and taste. The surge in silver prices has caused the cost of edible silver leaf to jump by 10-15 per cent.
How Sweet Shops Are Responding
This price hike has created a dilemma for sweet makers, who are adopting different strategies to cope:
Delhi: Sid Mathur, owner of Delhi Khoya Mithai, stated that they are now preparing sweets without the traditional silver leaf garnish to keep costs down.
Mumbai: Bakhtiar K Irani, MD of the Parsi Dairy Farm, said that while the cost of silver leaf has risen by 10-15 per cent, they have decided not to increase the prices of their sweets.
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Agra: Shivam Bhagat, owner of Bhagat Halwai, provided a specific example, noting that a single piece of silver leaf that cost Rs 5 last Diwali now costs Rs 8. He explained that while the GST reduction did lower the base price of sweets, the increased cost of silver leaf has largely offset any potential savings for the consumer.