Prices could rise by 10-15 per cent
Companies like Dabur and Parle are monitoring the situation and will take precautionary measures to cope with the inflationary pressures. According to some media reports, Hindustan Unilever and Nestl have hiked their food prices in the last week. “We expect a 10 to 15 per cent increase in prices from the industry side,” said Mayank Shah, senior category head, Parle Products.
Palm oil and crude oil became cheaper
“There is a lot of volatility in prices,” he said. In such a scenario, it is difficult to say how much the prices will go up. 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, the price of crude oil has come down below 100 100 after reaching 140 140 a barrel.
Prices are higher than before
“However, prices are still higher than before,” said Shah. “Everyone is talking about a 10-15 per cent increase now. However, the cost of production has gone up significantly.”
He said that Parle has a lot of stock at present. A decision on inflation will be taken in a month or two. Ankur Jain, Chief Financial Officer, Dabur India, said that inflation has been high for the second year in a row. “Consumers have reduced their spending due to inflationary pressures. They are buying small packs. We are looking at the situation and after deliberations, we will take measures to avoid inflationary pressures. “
Coffee and noodles are already expensive
Abnish Rai, executive vice president, Edelweiss Financial Services, said FMCG companies were passing on the burden of inflation to consumers. “Hindustan Unilever and Nestle have the power to set high prices. They are putting the burden of increasing the price of coffee and packaging goods on the consumers. We expect all FMCG companies to raise prices by three to five per cent in the first quarter of 2022-23.
According to media reports, companies like Hindustan Unilever and Nestl have already hiked prices of tea, coffee and noodles. These companies have put some of the burden of rising commodity prices on consumers.
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