Shocking!! Soon, Indian households will get huge grocery bills!!
Soon, the cost of tea, edible oils, soaps etc would increase by 5 to 20%. Truth is that this would be the biggest jump in the year. Household budgets would be disrupted by inflation. Shocking right!!
As the FMCG or fast moving consumer goods industries announce price increases on the daily essentials, the households across India would be witnessing a huge rise in their grocery bills.
It is worthy to mention here that highly popular FMCG companies such as Hindustan Lever, Dabur, Godrej Consumer, Tata Consumer, Parle, Wipro Consumer, Nestle, Marico, Adani Wilmar etc have started to increase the process of the essentials. It is now said that the increase in the prices of essentials would be to offset the increase in the commodity prices and higher custom duty etc.
In September, 22percent increase in the import duty on the edible oil has increased the production cost of the companies. It has been brought out by Mr. Mayank Shah, VP of Parle Products that their company would be increasing the cost of all the brands.
Parle Products is famous for its biscuits like Hide & Seek and Fab etc is known to us. Point is that this would be the first major price hike in a year for this company. Mr. Mayank Shah is of the view that despite the increase in the price consumer`s interest would not be negatively impacted.
It has been revealed by data from Bizom or retail intelligence platform that rural demand has been responsible for 4.3% growth YoY/ year on year growth in India`s FMCG market. The sales (both rural and urban) in November 2024 have decreased by 4.8percen when compared to the sales in November 2023.
For the essential products like soaps and tea, Hindustan Lever has increased the prices and for the healthcare and oral hygiene products, Dabur has increased the prices now. As a result of these market trends, Nestle has adjusted the prices of Nescafe coffee brands.
In the next 2 quarters and despite the price hike, the urban demand would not be impacted severely and this was according to the FMCG companies. Wipro Consumer Care CEO Mr. Neeraj Khatri spoke about how these hikes might affect the volumes to some extent but the effect would be much lesser in the consumer and essential categories. Across all pack sizes, the latest round of price hike is being carried out uniformly and this has been observed by the FMCG distributors. In the past, just the large packs were affected is known. The prevailing inflation based pressure has led to widespread impact on consumer goods. These pricing adjustments are needed for the value growth and long term sustainability during tough market conditions.
