FMCG products to become dearer, companies to adopt new cost cutting measures


Your wallet could get lighter the next time you visit a supermarket, for manufacturers of FMCG products are revising prices of their goods. Most manufacturers are increasing the cost of their products or reducing quantities to offset higher input costs. Biscuits, chips, soaps, detergents and ice-cream prices will go up following this decision.

The joy of eating ice-creams will reduce following rising prices.
Your favourite ice-cream could pinch your wallet this summer, with companies set to increase prices.

Costs of raw materials like sugar, milk, palm oil, etc. have seen a hike between 20% and 80% over the last year, prompting companies to take this decision. The wholesale price index (WPI) inflation stood at 5.25% in January, the highest in the last 30 months. WPI inflation for sugar was 22.83, while it was 6.25 for edible oil.

Companies will pass the burden of these increasing costs to consumers. One can expect prices to go up by 8 to 12% over the coming weeks.

While Britannia biscuits will cost 7% more than before, Amul will increase costs by around 5-8%. Similarly, soaps like Santoor will be dearer by 5%. Most of the companies are revising prices after four years.

Demand for products had reduced in the months following demonetisation, with companies recording poor sales. The move to offset prices could impact sales but companies are left with no other option.

While some manufacturers are directly increasing costs, others are choosing methods like reducing the weight of products. Additionally, companies could also reduce the number of freebies they previously offered with such goods.


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