Diwali shopping is becoming more expensive for Indian households in 2026, with prices of consumer appliances rising by 3% to 7%, traditional sweets increasing by around 15% and pistachios becoming nearly twice as expensive as last year. Higher raw material costs, weaker agricultural output in major producing countries and rising freight expenses are pushing up prices across several popular festive categories.
The increase is affecting both household purchases and traditional Diwali gifting. Appliance manufacturers are passing on higher component costs to consumers, while sweet makers are dealing with more expensive milk, khoya, sugar, dry fruits and packaging. Retailers expect festive sales revenue to increase, but the growth in the actual number of products sold may remain more limited as consumers become increasingly conscious of their spending.
Appliances Become 3% to 7% More Expensive
Consumer electronics and appliance manufacturers have increased prices ahead of the festive season, adding to the cost of products such as air conditioners and televisions.
Companies including Haier, LG and Blue Star have implemented price increases of approximately 3% to 7% across selected categories. Havells India is also planning price increases of 5% to 7% during the December quarter to offset rising raw material expenses.
The price adjustments come amid higher costs for metals, plastics, electronic components and transportation. Manufacturers have faced pressure from rising prices of copper, aluminium and steel, which are important inputs in appliance production.
| Company | Pricing development |
|---|---|
| Haier | Price increases of around 3%–7% across selected categories |
| LG | Price increases across selected appliance categories |
| Blue Star | Price increases of around 3%–7% |
| Havells India | Planning 5%–7% increases during the December quarter |
The increases are particularly relevant for products such as air conditioners, where copper is an important component. Higher manufacturing and logistics expenses can make it difficult for companies to maintain existing prices without affecting margins.
The timing is also important because the festive period traditionally contributes significantly to annual appliance sales. Consumers often wait for Diwali and Dhanteras offers to purchase televisions, refrigerators, washing machines and air conditioners.
However, higher prices could influence buying decisions, particularly among households planning large purchases.
Vijay Sales Expects Higher Revenue but Slower Volume Growth
Retailers are reporting a mixed picture as higher prices support sales value while consumers become more selective.
Electronics retailer Vijay Sales expects its festive-season sales value to grow nearly 20%. However, unit volume growth is expected to remain in single digits.
Vijay Sales Managing Director Nilesh Gupta told Moneycontrol that nearly 70% of purchases at the retailer are now being made through equated monthly instalments (EMIs).
EMI financing allows consumers to spread payments over several months instead of paying the entire purchase amount upfront. This can make expensive products more accessible, particularly during a period of higher prices.
However, greater dependence on financing also indicates that affordability is becoming an important consideration for consumers.
Cellecor Gadgets founder and Managing Director Ravi Agarwal said buyers are researching products more carefully and looking for value before making purchases.
This suggests that manufacturers and retailers may need to compete through product features, financing options and promotional offers rather than relying entirely on festive discounts.
Mithai Prices Increase Around 15%
Traditional Indian sweets are also becoming more expensive ahead of Diwali.
Sweet manufacturers and retailers are dealing with higher prices of several important ingredients, including:
- Milk and khoya
- Sugar
- Almonds, pistachios and other dry fruits
- Packaging materials
- Decorative ingredients such as silver leaf, commonly known as silver vark
A Delhi-based sweet shop chain has reportedly increased prices by nearly 15% ahead of the festival.
The price increase is already influencing purchasing behaviour. Some consumers are choosing smaller quantities rather than reducing their spending on sweets entirely.
Anjali Jain, who runs Jaipur-based artisanal and luxury mithai business Tyohaar Sweets, told Moneycontrol that the business had increased prices by 10% to 12% because of higher costs throughout its supply chain.
The company has also started using seed mixes instead of some dry fruits in gifting hampers to maintain more affordable options.
This reflects a broader adjustment among sweet makers: changing product composition, reducing pack sizes or offering alternative ingredients to manage costs without significantly increasing final prices.
Pistachio Prices Nearly Double, Almonds Become 35% Costlier
Dry fruits have experienced some of the sharpest price increases this festive season.
Pistachios, commonly used in Indian sweets and Diwali gift boxes, have become nearly twice as expensive compared with the previous Diwali.
According to figures shared by the Nuts and Dry Fruits Council (India), pistachios are now selling at approximately ₹1,500 to ₹2,100 per kg, compared with around ₹900 per kg last year.
Almond prices have also increased significantly.
| Product | Price during Diwali 2025 | Price during Diwali 2026 | Reported increase |
|---|---|---|---|
| Almonds | ₹800–₹900/kg | ₹1,000–₹1,200/kg | Around 35% |
| Pistachios | Around ₹900/kg | ₹1,500–₹2,100/kg | Nearly double |
The rise in dry fruit prices is linked to lower agricultural output in important producing regions.
Gunjan Jain, president of the Nuts and Dry Fruits Council (India), attributed the increase in pistachio and almond prices to crop damage and lower yields in Australia and the United States. Higher freight expenses have added further pressure.
The situation is also affected by geopolitical tensions in West Asia, which have increased shipping and transportation costs.
An earlier Economic Times report in October also highlighted supply challenges involving Iran and Afghanistan, alongside a weaker rupee and higher freight expenses. It reported that pistachio prices had increased by 60% to 70% and almond prices by around 25% compared with the previous Diwali.
Rising Milk and Sugar Costs Add Pressure on Sweet Makers
The increase in mithai prices is not driven by dry fruits alone.
Milk, khoya and sugar are essential ingredients for many traditional Indian sweets, including kaju katli, peda, barfi and gulab jamun.
Sugar prices in Uttar Pradesh mandis have reportedly increased to ₹5,700 per quintal from ₹4,800 in the previous month.
Milk costs are also rising. The Karnataka cabinet recently approved an ₹8-per-litre increase in Nandini milk prices.
These increases can affect sweet manufacturers because dairy products account for a substantial portion of production expenses.
Packaging expenses are another consideration, particularly for premium festive gift boxes that include decorative containers, dry fruits and silver vark.
For businesses operating with limited pricing flexibility, higher input costs can reduce margins unless they are passed on to customers.
FMCG Products Also Face Higher Costs
The pressure on household budgets extends beyond Diwali purchases.
Major fast-moving consumer goods (FMCG) companies, including Hindustan Unilever, Dabur and Marico, have increased product prices earlier in 2026 to manage higher input costs.
These adjustments affect everyday household purchases, including packaged foods, personal care products and other consumer goods.
As a result, consumers are facing higher expenses across several categories at the same time.
For households, this means festive spending must compete with regular monthly expenses, potentially encouraging more careful budgeting and a preference for smaller or lower-priced products.
The Bigger Picture
Diwali 2026 highlights how global supply conditions and domestic input costs can influence everyday consumer spending in India. Higher appliance prices are linked to manufacturing components and commodity inflation, while expensive dry fruits reflect agricultural supply constraints, import costs and freight disruptions. Sweet manufacturers are facing pressure from both agricultural and packaging expenses.
The important distinction is between higher sales revenue and higher sales volumes. Retailers may report stronger revenue because products cost more, even when consumers purchase fewer units. The growing use of EMIs, smaller sweet purchases and alternative ingredients suggests that consumers are adjusting their buying habits rather than simply accepting higher prices.
Looking Ahead
Retailers and manufacturers will be watching whether festive demand remains strong despite the higher prices. Appliance companies may continue adjusting prices if copper, aluminium, plastics and freight costs remain elevated, while sweet makers will depend on milk, sugar and dry fruit prices to determine their next pricing decisions.
For consumers, the festive season is likely to involve more comparison shopping, careful budgeting and greater attention to pack sizes and financing costs. Whether demand remains strong after Diwali will provide a clearer indication of how much higher prices have affected household purchasing power.
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
