Consumers will now have to open their pockets more for everyday products. FMCG companies are preparing to raise the prices of their products due to rising prices of commodities like wheat, palm oil and packaging goods. FMCG companies have also been hit by the Russia-Ukraine war. He believes that this will lead to higher prices of wheat, edible oil and crude oil.
Companies like Dabur and Parle are watching the situation and will take cautious steps to cope with the inflationary pressures. Hindustan Unilever and Nestle have hiked their food prices in the last week, according to some media reports. Mayank Shah, senior category head, Parle Products, told PTI: “We expect a 10 to 15 per cent increase in prices from the industry. “There is tremendous volatility in prices,” he said. It is difficult to say how much inflation will increase in such a situation. He said that the price of palm oil has gone up to Rs 180 per liter. Now it has come down to Rs 150 per liter. Similarly, after moving to $ 140 per barrel, the price of crude oil has fallen below $ 100.
“However, prices are still higher than before,” Shah said. “Everyone is talking about a 10-15 per cent increase now. However, there has been a significant increase in production costs.” Echoing the sentiment, Dabur India’s chief financial officer Ankush Jain said, “Inflation is still high and for the second year in a row, it is a matter of concern.” We are monitoring the situation and, after due consideration, we will take measures to curb inflationary pressures. ”
Abnish Roy, executive vice president, Edelweiss Financial Services, said FMCG companies were shifting the burden of inflation to consumers. “Hindustan Unilever and Nestle have the power to keep prices high. They are passing on the burden of rising prices of coffee and packaging goods to consumers. We anticipate that all FMCG companies will raise prices by three to five per cent in the first quarter of 2022-23. These companies have placed some of the burden of price rise on consumers.