look news india
New Delhi: Consumer goods companies (FMCG) have increased the prices of their products, but given the stable demand in urban markets and signs of improvement in rural markets, the companies are not passing the entire burden of the price increase on consumers. Companies selling packaged products have increased the prices of their products by single digits so that demand is not affected.
Sources from companies in this sector said, “We have increased the prices slightly. We see a 3 to 5 percent increase in prices between the third and fourth quarters. There has been a slight increase in prices in December but the prices will have to be increased further in the fourth quarter because some softening in the prices of palm oil is expected, after which the company will increase the prices.
However, they do not want to pass the entire burden of the price increase on consumers. We are taking several steps in terms of cost efficiency program so that the company can increase the prices of its products by about 5 to 7 percent in view of the increase in raw material prices.
The price of raw materials has increased by 18 to 20 percent. Rural markets are just starting to recover and demand in urban markets is currently stable. In such a situation, we do not want to affect demand growth by increasing prices too much. Soap prices have increased due to increase in palm oil prices. As far as edible oil is concerned, the price will increase or decrease depending on the stock. Tea has also increased by 25 percent.