FMCG firms to hold prices despite input cost rise

FMCG companies are expected to maintain prices throughout the festive season, despite a rise in commodity prices and geopolitical disruptions, in an effort to safeguard consumer demand and promote volume growth, according to industry executives. Leading executives revealed that firms have already implemented modest price hikes of approximately 2-5 percent during the June quarter to counteract higher input costs, and are not anticipated to increase prices further before the end of the festive season, even as margins are under pressure.

The sector is currently facing renewed cost pressures, with sugar prices reaching an all-time high, alongside significant surges in the costs of essential inputs like edible oils, coffee, cocoa, and crude oil derivatives utilized in packaging, caused by geopolitical tensions and supply concerns in global markets.