FMCG companies will increase prices, many food items like biscuits and chocolates will become expensive, know why and when
FMCG Companies Price Hike: FMCG or Fast Moving Consumer Goods (FMCG) companies are now going to increase prices and five major FMCG companies in India have also said yes to this. FMCG companies have predicted price hike citing rising inflation and fluctuations in commodity prices. FMCG companies are considering increasing prices by 4-10 percent to maintain volume growth, it remains to be seen when it is announced.
RBI governor has also expressed concern over food inflation
Amidst the announcements of the Reserve Bank’s monetary policy, RBI Governor Shaktikanta Das said that food inflation has raised RBI’s concerns. Food inflation has a 46 percent weightage in the retail inflation rate. Food inflation has contributed 75 percent to the retail inflation rate in May and June.
Britannia Industries said- prices will have to be increased slightly
According to the Economic Times report, Britannia Industries Managing Director Varun Berry had said in an analyst call that the inflation rate is expected to remain between 4-5 percent in the coming months and if this happens, we will have to increase prices a little. In the analyst call after the first quarter results, Britannia MD clearly said – “We have done what we could. We have not increased prices for a long time but now the time has come to start consolidation.”
Dabur India Limited hinted at increasing rates in the food business
Dabur’s Chief Executive Mohit Malhotra said that due to the rising inflation rate of food items, we may have to increase some prices in our food business. This increase can be up to 2 percent. Let us tell you that Dabur had hiked the price of healthcare products by 6 percent in the first quarter of the current financial year. At the same time, prices were increased by 1.5 percent in the home and personal category.
Parle Products also adopted the path of increasing prices
Mayank Shah, Vice President of Parle Products, has also admitted that due to the increase in the prices of sugar and cocoa, they will also have to increase the prices of their products. The company has already increased the rates of some of its brands. Sugar, flour, cocoa are the main raw materials for the company and due to the rising inflation rate, the rate hike will have to be taken. However, this increase will not be as much as it had to be done due to the Covid crisis.
What does HUL have to say?
According to Hindustan Unilever, prices of most commodities will remain stable except tea leaves. In an analyst call, top HUL officials have said that we cannot assure about tea but single digit pricing can be seen in the remaining months of this financial year.
Mondelez India Foods Pvt Ltd
Just last week, Mondelez’s global chairman and CEO Dirk Van de Put said that food inflation will have an impact on the household expenditure of lower and middle-class families. Mondelez India is famous for popular chocolate brands like Cadbury Dairy Milk and Toblerone.
