Silver shock hits mithai trade as vark prices double

Demand for silver vark has declined by 25-30% from Rakshabandhan through the recently concluded wedding season

A sharp rise in silver prices is beginning to weigh on India's traditional sweets industry, pushing mithai makers to reconsider the use of vark-the delicate edible silver foil that adds a premium finish to popular confections. The Economic Times reported that prices of silver vark have almost doubled this year to about Rs 1,400 for 150 sheets, prompting many sweetmakers to replace the shimmer on favourites such as kaju katli with alternatives like pistachio and saffron.

Demand for silver vark has declined by 25-30% from Rakshabandhan through the recently concluded wedding season, The Economic Times said. This slowdown comes alongside a steep rally in silver prices, which have jumped from Rs 86,005 per kg on January 1 to Rs 1.92 lakh per kg as of Tuesday, based on data from the India Bullion & Jewellers Association.

Arik Jain, managing director of Ahmedabad-based Jainam Silver Products, told The Economic Times that silver prices have climbed sharply over the past six months, forcing manufacturers to double the cost of silver vark. As a result, many mithai makers who earlier relied on vark are now turning to dry fruits to enhance the visual appeal of sweets, he said.

Vark is an ultra-thin filigree foil made from pure metal, most commonly silver, though gold is also used in some cases. While it is traditionally associated with North Indian sweets, The Economic Times noted that its use extends across the country. Firoz Haider Naqvi, director-general of the Federation of Sweets and Namkeen Manufacturers, said consumers in states such as Uttar Pradesh, Punjab, Haryana, Rajasthan, Madhya Pradesh and Bihar perceive sweets topped with silver vark as being of higher quality.

With silver prices continuing to climb, several sweetmakers raised prices by 5-10% after Diwali. Others have chosen not to pass on the cost increase, fearing a loss of customers and instead absorbing the impact through lower margins, The Economic Times reported. Bharat Agarwal, director of Delhi-based Shyam Sweets, told the paper that his company has stopped using silver vark and switched to dry fruits as profit margins come under pressure.

Some confectioners are also reducing the amount of vark used per sweet. Naqvi told The Economic Times that many shops have moved from manual application to automated processes, allowing them to apply thinner layers of silver foil more efficiently.

Demand for gold vark, however, remains strong among affluent buyers, especially during festivals and weddings. The Economic Times said one kg of sweets garnished with gold vark can cost between Rs 25,000 and Rs 50,000, while a similar quantity of kaju katli with silver vark sells for around Rs 1,800-Rs 2,000 in markets such as Delhi and Mumbai.