South Asian Businesses Strive to Keep Diwali Celebrations Affordable

As Diwali approaches, South Asian businesses in the United States are grappling with the effects of increased import tariffs, which threaten to raise prices just as the festival season begins. Storeowners and chefs are finding ways to adapt to the rapidly changing economic landscape while striving to keep traditional products affordable for their customers.

Rising Costs Challenge Storeowners

At the New India Bazaar on Polk Street, Hari Bhatt oversees a family-run store that has served the community for three decades. Regular customers visit, contemplating purchases of essential items such as low glycemic-index Basmati rice and popular Bengali sweets. The recent surge in import prices has made it difficult for families to afford both, as the store grapples with the impact of tariffs on goods from South Asia, including a significant 50 percent tariff on certain imports.

“It’s always tough when somebody has to put something back on the shelf,” Bhatt explained. He noted that many items, such as the beloved Parle-G biscuits, have seen prices rise from 35 cents to 50 cents, marking a 43 percent increase. With approximately 90 percent of their inventory reliant on Indian imports, Bhatt’s family is working hard to absorb some of these costs to maintain affordability.

In anticipation of Diwali, which celebrates the victory of light over darkness and prosperity, the Bhatts stocked up on non-perishables. However, seasonal items, particularly the clay lamps traditionally used during the festival, have seen price increases ranging from 12 to 20 percent, depending on the retailer.

Community Resilience Amid Economic Pressures

Despite the price hikes, Bhatt remains optimistic about Diwali sales. “I think people will be a bit more aware of prices,” he said. “But we Indians are joyful people. We celebrate so much and so often.”

At Indian Spices and Groceries in the Mission district, owners Sajad Shiek and Avik Chattopadhyay have also felt the pinch, with the price of a popular item rising from $4.99 to $5.99, a 20 percent increase that reflects the challenges faced by their wholesale distributor.

In Chinatown, Manisha Gurung operates Manisha Fashion Collection, one of the few sources for traditional Indian clothing in the city. While she typically imports most of her pre-stitched items from Nepal, she has increased her imports from India during the festival season. This year, shipping costs have risen, forcing her to raise prices by 5 percent. “When I tell customers it’s because of tariffs, they understand,” she said, emphasizing the rarity of her offerings.

Sonu Bhamu, owner of Jalebi Street in the Upper Haight, plans to absorb increased costs for the time being, emphasizing customer loyalty and the popularity of Indian street food. He expressed concern not just about prices but also about the potential unavailability of essential ingredients as trade relations shift.

Creativity has become essential for chefs like Pujan Sarkar of TIYA, a Michelin guide restaurant. Adapting recipes to utilize locally available ingredients, he has had to modify his canapes, which originally relied on imported items. Similarly, Chef Srijith Gopinathan at Copra has adjusted his menu to avoid high-tariff ingredients, although he continues to import King Mackerel, despite an 18 percent price increase, believing that customers who seek this delicacy can afford the additional cost.

The festival season remains a crucial time for South Asian businesses, and the community’s resilience amid economic pressures is evident. As families prepare for Diwali, they are determined to celebrate, even if it means adjusting their spending.