Ready-made food prices may stay high as input, packaging costs rise

The cost of ready-made food items such as savouries, sweets, and snacks is expected to stay high due to an increase in input costs and packaging expenses, according to recent data from India's statistics ministry. Inflation within this sector rose to 9% year-on-year in July, up from 6.7% in June and 0.8% in January. Key ingredients like tomatoes and edible oil have seen significant price hikes, with tomatoes increasing by 23% and edible oil by 18% year-on-year between April and July 2026.

Sugar prices also rose by 3% over the same period. The surge in costs for these basic ingredients is contributing to higher production costs and ultimately, increased retail prices for ready-made food products. According to experts, factors such as the West Asia conflict and its impact on packaging, transportation, and other raw materials are playing a role in driving up these costs.

Ready-made food products are a reflection of these higher input costs, with spices, culinary herbs, and seeds seeing the highest inflation at 12.2% in July. Other served processed foods, including chaat, bhel puri, and golgappa, experienced inflation of 6.4%, while packaged processed foods like chips rose by 0.9%. Experts suggest that if prices for key ingredients like tomatoes continue to rise, this increase will eventually be reflected in the final cost of ready-made food products, even if manufacturers purchase them in bulk.