Five significant FMCG businesses in India have also agreed to raise their pricing of items like biscuits & chocolates. FMCG, or fast-moving consumer goods, companies, will now raise their prices. FMCG companies have forecast price increases, citing growing inflation and commodity price variations. To sustain volume growth, FMCG companies are contemplating raising prices by 4–10 percent; when this is disclosed is yet to be determined.
The governor of the RBI has also voiced concerns over food inflation.
RBI Governor Shaktikanta Das stated that the Reserve Bank is concerned about food inflation in today’s monetary policy remarks. The retail inflation rate is weighted 46% by food inflation. In May and June, food inflation accounted for 75% of the retail inflation rate.
Britannia Industries stated that a small price rise will be necessary.
As per the report published in the Economic Times, Varun Berry, the Managing Director of Britannia Industries, stated during an analyst call that we will have to raise prices slightly if the inflation rate stays within the range of 4–5% in the upcoming months. Britannia MD made it very apparent during the analyst call following the first-quarter results: “We have done what we could. It’s time to begin consolidation even if we haven’t raised prices in a while.”
Dabur India Limited made references to rising pricing in the food industry.
Mohit Malhotra, the CEO of Dabur, stated that we could need to raise some due to the rising rate of food item inflation. 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.
Here are three reasons why FMCG businesses
want to raise their prices of items like biscuits & chocolates. Britannia, Parle, Dabur, and Mondelez intend to raise their product prices by 4–10% shortly.
- The cost of their products has increased as a result of rising costs for sugar, flour, and cocoa; as a result, the companies are now prepared to raise prices.
- FMCG companies had been delaying the choice to raise prices for several quarters to create demand.
- Customers will now have to bear the cost of growing food inflation and rising commodities costs globally.
To what extent have the costs of flour, sugar, and cocoa risen thus far?
- For manufacturers of packaged foods, the cost of flour has gone up by 20 percent in 2 years.
- Sugar prices have increased by 40 percent in 2 years.
- For packaged food companies, the price of flour has increased by 60 percent in 2 years.
Read More: Ducati has released a new, powerful bike that costs as much as an electric car
| |
 YouTube | Click Here |
| Facebook Page | Click Here |
| Instagram | Click Here |
| Telegram Channel | Click Here |
