As the festival of Diwali approaches, South Asian businesses in urban areas are grappling with rising import prices due to significant tariffs. With tariffs reaching up to 50%, store owners and chefs are seeking strategies to maintain affordability for their customers while facing the reality of increased costs.
At the New India Bazaar on Polk Street, Hari Bhatt, who operates the family-owned store, has witnessed firsthand the impact of these tariffs. Regular customers now struggle to choose between essentials like low glycemic-index Basmati rice and traditional Bengali sweets. Bhatt noted that the price of a small pack of Parle-G biscuits, a popular Indian snack, increased from $0.35 to $0.50, marking a 43 percent rise. With 90 percent of their inventory sourced from India, these price hikes are forcing many shops, including New India Bazaar, to navigate how much of the cost they can absorb versus how much to pass on to consumers.
The family has attempted to mitigate costs by back-stocking nonperishable items, such as traditional cooking pots and utensils. However, seasonal items tied to Diwali, which falls on November 13, 2023, present a greater challenge. Prices for popular Diwali items, such as clay lamps, have surged by 12 to 20 percent depending on the retailer. Bhatt explained that they often split the tariff costs between their store and the customers to balance affordability.
Despite these challenges, Bhatt remains optimistic about Diwali sales. “People will be more aware of prices, but we Indians celebrate our culture, and that won’t change,” he stated. Many consumers are likely to continue purchasing traditional goods, even if it means spending less than in previous years.
Other store owners, such as Sajad Shiek and Avik Chattopadhyay at Indian Spices and Groceries in the Mission district, are also feeling the effects of rising costs. A pack of four popular spices previously priced at $4.99 has now increased to $5.99, reflecting a 20 percent hike. Despite the burden of tariffs, they are determined to provide quality goods to their customers.
In Chinatown, Manisha Gurung, who runs Manisha Fashion Collection, faces similar pressures. With most of her traditional clothing imported from Nepal, she has had to increase her prices by 5 percent due to additional shipping costs of $50 per box. Gurung remarked that her customers understand the situation and continue to purchase, as her shop remains one of the few in the city offering authentic Indian attire.
Meanwhile, Sonu Bhamu, owner of Jalebi Street in the Upper Haight, plans to absorb the increased costs for now, awaiting progress in trade discussions between the United States and India. He expressed concern not just about prices, but about the potential unavailability of key ingredients, as exports from India have declined by 20 percent in September.
Chef Pujan Sarkar of TIYA, a Michelin-rated restaurant, underscores the importance of adaptability during these times. He has had to creatively adjust his menu by substituting unavailable ingredients with locally sourced alternatives while preserving the essence of traditional Indian cuisine. Others, like Chef Srijith Gopinathan of Copra, also adapt by avoiding high-tariff items, although he continues to import specialty items like King Mackerel, which has risen in price by 18 percent.
As the festival of Diwali approaches, these businesses are determined to maintain the cultural significance of the celebration while navigating the complexities of an evolving economic landscape. The resilience shown by South Asian store owners and chefs reflects a commitment to their communities, ensuring that the spirit of Diwali remains vibrant despite financial challenges.
