Inflation-hit FMCG firms may hike prices

New Delhi, Jan. 10: Consumers may have to shell out more for their daily use products as FMCG firms, which are facing inflationary pressure on their key raw material inputs, are considering raising their product prices.

FMCG companies like Marico and others have already gone for a price hike, while some firms, including Dabur, Parle and Patanjali, are closely monitoring the situation.

FMCG players have been trying to absorb the price increase of raw material inputs such as coconut oil, edible oil and palm oil, but they are unlikely to hold the prices for a long time as that will impact their gross margins.

"We have seen a significant rise in input cost and especially edible oil in the last three to four months and that is putting pressures on our margins and costs. As of now, we have not taken any price hike but we are closely monitoring it and if it goes like this then probably, we may go for a price hike," Parle Products senior category head Mayank Shah said.

Dabur India CFO Lalit Malik said the recent months have seen inflation inching up for some key raw materials like amla and gold.”"Going forward too, we expect some inflationary pressure in key commodities. Our efforts will be to absorb the raw material price increase,” he said.

Patanjali is still in a 'wait and watch' mode. "We always try to absorb the market oscillation but if compelled by the market factors, we would take a final decision,” its spokesperson said.