Kerala's Snack Industry Bracing for Shock as Prices of Sugar, Eggs Surge

Kerala's traditional snack and bakery industry is bracing for a shock as prices of sugar, eggs, cornflour, and other key ingredients surge. This has led to concerns about the quality of ingredients being used, with some bakers resorting to artificial flavours and substandard substitutes.

The price hike is attributed to the Union government's E20 policy, which diverts crops like sugarcane and corn to produce ethanol for fuel blending. This has triggered a crisis across the food ecosystem, leading to production costs increasing for bakery and food industries.

On average, sugar prices have gone up by 10-15%, while cornflour prices have seen a 10-20% hike. Egg prices have also added to the pressure, with some bakers experiencing a 40% rise in egg prices from last year.

Khaled K, a baker in Kozhikode, said that sugar prices have shot up by 10-15%, and cornflour has seen a 10-20% hike. He added that on end products, a minimum 10% price rise is inevitable.