Bikanervala Foods Ltd said it will not increase the prices of sweets as of now and has decided to absorb the hike in rates of milk by leading suppliers Amul and Mother Dairy.

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With effect from Monday, Amul and Mother Dairy have increased the liquid milk prices by Rs 2 per litre.

"The recent surge in milk prices is likely to have an impact on the consumers and small sweet shop owners, leading to higher prices for milk-related products.

However, it's important to note that the demand for 'mithai' and other milk-based products may not be significantly affected by these rising costs," said Manish Aggarwal, Director, Bikano, Bikanervala Foods Pvt Ltd.

"We are absorbing the increased cost of milk and have no immediate plans to pass it on to our consumer," he added.

Aggarwal said the company is carefully balancing consumer price sensitivity with price elasticity and competitive dynamics.

"While we aim to maintain a steady volume momentum, if this scenario persists, we may need to consider adjusting the prices of our products in the future," he said.

Bikanervala Foods is one of the leading players in sweets and snacks products.