Top News

Knews Desk– There are signs of increasing inflationary pressure on the pockets of common people in India once again. Everyday items like soap, detergent, shampoo and many packaged foods including biscuits can be expensive. The reason for this is being said to be the continuously increasing cost of raw materials, packaging and transportation.

Increasing pressure from FMCG companies

The country’s leading Fast Moving Consumer Goods (FMCG) companies like Hindustan Unilever, Nestle India, Dabur India, Britannia Industries and Marico are now facing increase in input costs. Companies say that the prices of crude oil, edible oil, milk and packaging materials are continuously increasing, which can have a direct impact on the prices of the products.

Dabur India has indicated that there could be another increase in prices in the coming quarters, due to a sharp jump in the cost of packaging and raw materials. At the same time, Hindustan Unilever and other big companies are also considering the strategy of changing prices to maintain margins.

Rural demand improving, but cost remains a concern

However, the FMCG sector has seen an improvement in demand, especially in rural areas. Many companies have registered an increase in volume growth, indicating that the phase of slowdown in consumption is ending to some extent. But despite this the cost pressure is continuously increasing.

Experts believe that if this trend continues, companies will either increase the price of products or reduce the packet size, so that the cost can be balanced.

Effect of crude oil and global tension

Fluctuations in crude oil prices are also becoming a major reason for increasing inflation. There is a possibility of energy cost increasing due to tension in West Asia and disruption in supply chain. Its direct impact is on transport, packaging and manufacturing.

If oil prices rise, diesel and petrol will become expensive, which will increase the cost of transporting goods. Its impact will ultimately reach consumers.

Food and household products most affected

Rising prices of wheat, milk and edible oil remain a matter of concern for companies like Britannia Industries and Nestle India. At the same time, the impact of inflation in agricultural products is also visible on the packaged food business of ITC Limited.

direct impact on consumers

If this situation continues, soaps, shampoos, oils, biscuits and other everyday products may become expensive. This will have a direct impact on the monthly budget of middle and lower income group families.

Experts say that if crude oil prices do not stabilize in the coming months and the monsoon remains weaker than normal, then inflationary pressure may increase further. The FMCG sector is currently facing a dual situation—improvement in demand on the one hand and rising costs on the other. If this trend continues then the times to come may prove to be more expensive for common consumers.