GST 2.0: FMCG cos expect magical price points for products to be restored within two months

FMCG players face challenges in setting reduced prices for their products in round figures

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NEW DELHI: With lower GST rates taking effect, fast-moving consumer goods players face challenges in setting reduced prices for their products in round figures, but expect the magical price points to be restored within two months.

The FMCG companies have reduced the magical price points, such as Rs 2, Rs 5, and Rs 10, of their product packs that were part of the sachet economy and popular among middle-class and rural consumers for various household and food items like biscuits, candy, and spices.

Now, a small pack of Parle G biscuits, which previously cost Rs 5, now costs Rs 4.5, and a shampoo pouch that was priced at Rs 2 has been reduced to Rs 1.75.

Due to time constraints for reprinting new packages, companies have launched product packs with reduced price tags to pass on the benefits of lower tax rates to customers, effective immediately.