Daily Necessities Will Become More Expensive, FMCG Companies May Boost Prices By Up to 20%

As businesses struggle to combat growing inflation, major FMCG companies in India are considering yet another wave of price rises in the coming months. This increase will range from a modest 4% to as much as 20%. Several FMCG companies, including ITC, HUL, Dabur, and Britannia, raised their product prices by about 2-3 times in the preceding year.

HUL had already announced a price increase of up to 20% on commodities such as soaps, detergents, and other categories in January. Producers of food products are also considering hiking prices. “The price hike at Parle will be in the range of 3-5 percent, and it will take effect in February or March.”

What is the reason for the price increase?

Food costs have risen due to increases in the cost of wheat, oil, and sugar, while prices of personal care goods such as soap have risen due to increases in the cost of crucial raw materials. Factors such as rising petrol, diesel, and even CNG prices, rising labour costs, rising packaging costs, and so on are all contributing to the already inflated prices.

What are the expectations from the Union Budget?

Firms in the fast-moving consumer goods industry are now seeking a solution in the upcoming Union Budget. To fulfill the ever-increasing demand, FMCG firms are expecting that the Union Budget would assist them in lowering manufacturing costs and reducing taxes on raw resources such as crops, oil, and machinery.

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