New Delhi: Prices of many daily use products have been increased by many companies while some are evaluating final options before observing a price hike, reported the ET.
It may be noted that the prices of many daily commodities will increase by about 5-8 per cent from the third quarter as companies look to offset the losses due to all-time high fuel prices, hike in minimum support price from farmers and certain commodities prices scaling upwards.
Speaking to the publication, Varun Berry, managing director of listed biscuit-maker Britannia Industries suggested that companies are finding it hard to deal with the increasing inflationary pressure, adding that “it will not be possible to hold on to prices going forward”. He concluded by saying that the company will try to balance value and volume growth.
Worth mentioning that this will be the highest price that companies will have to pay in two years as petrol and diesel rates have touched a record high. As of now, petrol price has crossed the R 87-mark in Mumbai and considering that it is a more product used by FMCG firms, the price hike seems inevitable.
According to a recent report by global financial companies firm Jeffries suggested that consumer goods giant Unilever has hiked the rate of detergents, skin care products and select soap brands by 5-7 per cent in the last month. Mirico, which makes Parachute hair oil and Saffola oil, increased price of hair oil portfolio by 7 per cent while Colgate Palmolive increased prices of some brands to the tune of 4 per cent last month.
B Krishna Rao, senior category head at Parle Products told ET that the company is mulling an increase in price to the tune of 7-8 per cent, adding that the impact of MSP has lowered their revenue. Worth mentioning that operational costs incurred by companies have also gone up due to higher packaging expenses.
There are several other factors that may lead to an increase in prices of not only daily products but also imported goods. The weakening rupee against the dollar is another factor which has triggered fresh inflationary pressures.