Daily commodity companies (FMCG) are preparing to raise prices in the name of price hikes next month due to the sharp rise in inflation. The price of edible oils has doubled in the last one year, the companies say. At the same time, the rise in prices of other raw materials has also affected the price of the products. FMCG companies have already raised prices twice in the first half of this year.
Companies say they have no choice but to raise prices. According to Sunil Kataria, Chief Executive Officer of Godrej Consumer Pvt Ltd (India and SAARC), prices of almost all kinds of goods are at a decade high. Kataria says the company only increased the price on July 1 and increased it twice in the last six months. The price of palm oil is skyrocketing. In such a situation, with the increase in cost, one is forced to raise the price. Sunil Agarwal, co-founder and president of RSH Global, says the cost of raw materials used to manufacture personal care products has increased by 25 per cent in the last six months. Aggarwal says that such cost escalation is becoming increasingly difficult for companies to tolerate and the FMCG sector is in crisis. Due to the rising cost, the price was forced to increase in May, Agarwal said. After this, prices had to go up in July. In this way, overall prices increased by eight to 10 percent. According to Varun Berry, MD of Britannia Industries, palm oil prices are high globally. The company has already raised prices due to cost increases.
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Companies fear the immediate price hike
Anuj Gupta, Vice President (Commodity & Currency) of IIFL Securities, said Hindustan has seen a sharp rise in commodity prices in the last one year. This is due to the high cost of production of FMCG companies. Despite this, Gupta says that companies wait two-three months without raising the price immediately and gradually pass the cost on to customers. Gupta says there is idleness in the market due to corona. In such a situation, she does not want to take the risk by immediately raising the price. The last month of the third quarter of September, in which companies are preparing to raise prices.
Petrol and diesel promotes inflation
Petrol and diesel prices have risen 25 to 40 percent in six months. Due to this, cargo shipments increased by 25 percent. The direct effect of this has been on products ranging from food and drink to everyday products. First, consumer goods and auto companies have increased prices. TV-freezes have become 20 percent more expensive in the past six months. But car companies have raised prices twice in six months. Maruti on Monday announced a hike of up to Rs 15,000 again. Rising prices of essential commodities have increased production costs due to inflation.
Improvement in employment conditions as indicated by these figures of EPFO