Indian FMCG Firms May Raise Prices Amid Rising Costs and Geopolitical Uncertainties

Some of the biggest FMCG companies in the country may increase the prices of some of their products in the month of September, which can mess up your kitchen budget. This increase in prices is being done due to the increase in input costs due to geopolitical uncertainties. Raw material (sugar, palm oil) prices have increased in the meantime, fuel costs have also increased. In such a situation, there is a huge pressure on the companies to save margins. In the June quarter, the FMCG sector had increased prices by about 2-5% on average. To save margins in the current quarter, the FMCG sector is taking steps like'shrinkflation'( reducing the weight of the product) or increasing the prices of select products. The company will resort to shrinkflation instead of directly increasing the price of biscuit packets. Under this, the price of packets of biscuits of 5 and 10 rupees will remain the same, but the weight will be reduced. Britannia's MD and CEO Rakshit Argues said, "If you see the impact in this quarter and 1% in the June quarter, then you will see an overall impact of < ID1%."