Brace yourself for a rise in prices of essential items such as milk, personal care goods, packaged food and eating out are set to become costlier in the next couple of months, according to a report.
Increased freight and packaging costs and higher commodities prices have been cited by consumer company executives in a report in The Economic Times.
R S Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), which owns Amul, is quoted as saying inflation in the dairy sector globally is at about 10%.
Suresh Narayanan, managing director of packaged foods maker Nestle India, said next year is going to be difficult as he expects a further rise in food prices. He is quoted in the report as saying that there is an uptick in milk prices and a surge in demand on account of heightened economic activities could lead to price rise. He said supply-side disruptions in cocoa, the oil complex and packaging materials have led to cost escalation of 4-5%. “There is going to be a spectre of food inflation that will haunt us,” Narayanan is quoted as saying.
According to the report, Reckitt Benckiser, the maker of Dettol handwash and Lizol disinfectant, had earlier said it was grappling with “once-in-a-generation cost inflation”
Palm oil, crude-based derivatives, and palm, sunflower, rice bran, and safflower oils have increased by 35-50% year on year. Crude derivatives, a key ingredient in personal care products, have risen by 30% year on year.
Dabur chief executive Mohit Malhotra said they will watch the situation for another three months and if inflation is persisting they will have to look at price hikes in Q4
An FMCG distributor said higher prices will be visible on bigger packs meant for urban consumption, retailed in modern trade and on ecommerce channels,”
Dining out will also be a costlier affair as commercial LPG cylinder prices have gone up multiple times this year, according to Kabir Suri, president of the National Restaurant Association of India (NRAI).
According to the report in The Economic Times, the cut in excise on petrol and diesel will have only marginal impact.
Ravi Jaipuria, chairman of RJ Corp, beverage maker PepsiCo’s national bottling partner, is quoted as saying that soft drink prices are set to be increased 3-4% for select packs in the upcoming season.
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