There seems to be no respite for the common man's pocket, neither in the present nor in the coming days.?
Just days after Nestle and HUL(Hindustan Unilever Limited) increased the prices of numerous daily use products like tea, coffee, milk, noodles etc., other FMCG giants are expected to follow the suit.
FMCG companies like Dabur and Parle, too, are contemplating a hike in their products to offset the impact of an unprecedented level of inflation in commodity prices such as wheat, palm oil and packaging materials.
Also Read:?From Milk, Chicken To Fuel: Basic Necessities Out Of Reach For Sri Lankans
Moreover, the ongoing Russia- Ukraine war has also added another blow to FMCG makers as they expect a rise in the prices of wheat, edible oil and crude, as per a report in The Hindu Business Line.
The report stated that companies such as Dabur and Parle are watching the situation and will undertake calibrated price increases to mitigate the inflationary pressures.
"We are expecting a 10-15% hike by the industry," Parle Products Senior Category Head Mayank Shah stated, adding that the prices are witnessing high fluctuation and hence it would be difficult to tell about the exact increase due to volatility of price, as per the report in The Hindu Business Line.
The price of palm oil had increased to ?180 per litre and now has come down to ?150 per litre. Similarly, crude oil prices had risen to nearly USD 140 a barrel and have now slipped below USD 100 per barrel, he added.
"However, it is still higher than what it was earlier," he said, adding that the companies are also hesitant in taking price increases significantly because demand was reviving after COVID and they do not want to tinker with that.
When asked as to whether Parle would also go for a hike, Parle¡¯s Shah reportedly said right now it has enough stock of packaging materials and other stocks and would take a decision after a month or two on this.
Expressing similar thoughts, Dabur India Chief Financial Officer Ankush Jain said inflation remains unabated and is a cause of concern for the second year in a row, as per The Hindu Business Line.
"The inflationary pressures and resultant price increases have led to consumers tightening their purse-strings and relooking at discretionary purchases, while also downtrading to smaller packs. We are closely watching the situation and will undertake calibrated price increases to mitigate the inflationary pressures," he said.
Also Read:?How Sri Lanka's Economic Crisis Has Led To Used Cars Costing More Than A Luxury Flat
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