Several Indian fast moving consumer goods (FMCG) manufacturers have hiked the prices of their products for the second time this year due to rise in input costs.
In a blow to consumers' wallets, several Indian fast moving consumer goods (FMCG) manufacturers have hiked the prices of their products for the second time this year. Companies like ITC, HUL, Parle, and Britannia, among others, increased their prices due to rising input costs. Prices of several items are expected to increase by 4-25 percent.
Prices of food items have increased due to rise in cost of wheat, oil, and sugar. Prices of soaps and similar personal products have also increased due to the significant rise in cost of the key material, palm fatty acid distillate. Rise in cost of fuel, labour and other inputs has only furthered worsened matters.
Here are some products that are set to become more expensive in the coming months.
Products of Dove, a personal care brand owned by Hindustan Unilever, are expected to cost over 12 percent more in the coming weeks and days. This is the second price hike that the product range has seen in less than six months. Shampoos and hair care products, in particular, are expected to witness increase in prices.
Another personal care brand owned by Unilever and distributed by Hindustan Unilever, Lux’s range of products, is also expected to witness a similar price hike to Dove’s range. Rising costs of similar raw materials mean that Lux soaps may soon cost consumers 10-12 percent more.
A clothing fabric conditioning product, Comfort Conditioner is the product that has seen some of the sharpest hikes in the Unilever line-up in India. Comfort Conditioner’s 19 ml pack has now seen a 33 percent price hike.
The iconic biscuit product offered by Parle will see a price hike of 10 to 20 percent in the next two quarters. This is on top of the 10 and 15 percent hike that the company had imposed on the product in the previous quarter. The rising cost of edible oils and wheat have contributed to increased input costs.
Another biscuit product offered by Parle, is expected to see a hike of 5-10 percent going ahead. Prices of palm oil, one of the key raw materials for the company, has increased nearly double YoY.
Parle rival and India’s largest biscuit maker, Britannia Industries also stated that it would increase prices across its range of products by 7.5 percent in this quarter and by 10 percent in the next quarter. The price increase would hit products like Good Day cookies and Tiger and Milk Bikis biscuits.
The brand of soap offered by ITC, along with other ITC soap products, will increase its price by around 10 percent as the brand tries to offset increased rising input costs. Cost of travel and transport have also increased due to high fuel prices.
Engage Deodrant & Perfume
Prices of ITC’s perfumes and deodorants are also set to increase by around 7 percent. The company stated that it has seen significant price inflation for raw materials in recent months. The company had earlier stated that price hikes would be the last option taken by the company.
(Edited by : Thomas Abraham)