Your monthly bill of everything from grocery to personal care essentials to packaged food is set to go up as freight, packaging and agri-commodities get more expensive.
RS Sodhi, MD of Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) which owns Amul brand told ET, “We expect prices across dairy products to increase this summer”. He further said globally inflation in the dairy sector is about a whopping 10%.
Nestle India, packaged foods managing director Suresh Narayanan said next year will be difficult on account of higher food commodity prices. He expects a further increase in food prices going ahead.
He further said opening of the economy has led to increased demand which had led to increased milk prices and further escalation is expected.
Global coffee prices are on the rise too due to supply-side constraints in oil complex, packaging materials which have caused 4-5% uptick in prices.
The management of Reckitt Benckiser, makers of Dettol hand wash and Lizol disinfectant, in their September quarter earnings conference call said the company was dealing with “once-in-a-generation cost inflation” across all markets.
Dabur CEO Mohit Malhotra in an investor call on Thursday said, “we saw inflation of around 9% in Q2 of this fiscal and increased prices by 3-4% to mitigate the impact”. He further said the company anticipated that inflation will soften by September quarter but that didn’t happen. “We will watch the situation for one more quarter and in case the inflation continues unabated, we will look at another round of price hikes in Q4,” he said.
The ET report quoting a leading FMCG distributor said, the company had indicated price rise of large packs but smaller, entry-level packs will not be affected, he added. Higher prices will be affected on bigger packs retailed on modern trade and e-commerce platforms meant for urban consumption. This increase will be over and above 2-10% increase that has already been done on most goods. All FMCG majors such as Hindustan Unilever, Procter & Gamble, Marico, Dabur, Nestle and Godrej Consumer Products have been raising prices for the last 6-8 months.
