new Delhi. Inflation is continuously troubling the consumers. Incoming consumers may now have to loosen their pockets more for daily use products. Due to the rise in the prices of commodities like wheat, palm oil and packaging goods, FMCG companies are preparing to increase the prices of their products.
Apart from this, FMCG companies have also suffered due to the Russia-Ukraine War. They believe that due to this, there will be a jump in the prices of wheat, edible oil and crude oil. In such a situation, it has become necessary to pass some of the cost burden on the consumers. The situation of companies like Dabur and Parle is being monitored and they will take thoughtful steps to deal with inflationary pressures. Some media reports said that Hindustan Unilever (HUL) and Nestle have increased the prices of their food products last week.
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15 Prices may increase by up to percentage
Mayank Shah, Senior Category Head, Parle Products, said that we are expecting 10 to 15 percent increase in prices from the industry side. He said that there is a huge fluctuation in the prices. In such a situation, it is difficult to say yet how much the prices will increase. He told that the price of palm oil had gone up to Rs 180 a liter. Now it has come down to Rs 150 a liter. Similarly, after going to $140 per barrel, the price of crude oil has come down below $ 100.
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higher cost of production
Shah says that the prices are still higher than before. Last time FMCG companies did not pass the burden of increase in commodity prices completely on to the customers. Now everyone is talking about 10-15% increase. However, the cost of production has gone up considerably. He said that Parle has enough stock at present. The decision to increase the prices will be taken in a month or two.
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Consumers reduced debt
Dabur India’s Chief Financial Officer Ankush Jain said that inflation continues to remain high and this is a cause for concern for the second year in a row. “Consumers have reduced their spending due to inflationary pressures,” he said. They are buying smaller packs.
Companies putting burden on customers
Edelweiss Financial Services Executive Vice President Abneesh Roy said that FMCG companies are passing the burden of inflation on the consumers. Hindustan Unilever and Nestle have the power to set high prices. They are passing on the burden of price hike of coffee and packaging goods to the customers. We estimate that all FMCG companies will increase prices by three to five per cent in the first quarter of 2022-23.
Tags:, Indian FMCG industry, Price hike
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