Household budgets go up as cos plan price hikes to offset cost

FMCG giants like Hindustan Unilever, Britannia, Tata Consumer, Dabur raised prices of their products - range from biscuits, sugar, salt and soaps, among others

- SAMIK SHAGOEL

HOUSEHOLD budgets have been thrown into disarray as prices of essential products have increased. This is a cause of worry for the middle-class, which is bearing the maximum brunt, as the consumer goods companies that have not taken price hikes yet are planning a raise now, and companies that have already taken hikes are looking at another hike.

Global geopolitical factors such as Russia-Ukraine war and continued rise in commodity prices - wheat, palm oil and packaging materials - have aggravated the inflationary pressures in the quarter ended March, 2022, which has led many FMCG companies to raise prices to keep their margins and profitability intact.

Prices of household goods have increased with FMCG giants like Hindustan Unilever, Britannia, Tata Consumer Products, Dabur increasing prices of their products - range from biscuits, sugar, salt and tea/coffee to soaps, shampoos and perfumes, among others. But the worst is not over yet! Varun Berry, managing director & CEO at Britannia Industries, at a post earnings analyst call earlier this week said, “We have not been able to keep pace with this inflation as we never estimated the kind of inflation we have seen, but we continue to take judicious price increases.” Britannia, which has already taken a 10% hike in 2022, may go for another 10% raise over and above the revision taken if the spot prices continue for the next 12 months.