Even as Parle Products is planning to raise prices of its select brands, Gujarat Co-operative Milk Marketing Federation has implemented a price hike for its packaged milk brand Amul Taaza from Rs 35 to 36. While Godrej consumer Products Ltd is planning to take a price hike for all its brands across categories by 6%, Emami Ltd is also planning to raise prices of its select brands in the next two months. To counter the rising input costs, ITC Foods is planning to a take price hikes for its impacted brands soon. ?It?s a combinations of rising inputs costs, increase in excise duty from 8% to 10% and MAT hike from 15 to 18% which is propelling FMCG companies to take price hikes now. We are seriously considering to raise prices in the next few months,? said HK Press, vice-chairman of Godrej Consumer Products.
On the company?s revised pricing strategy, Praveen Kulkarni, general manager, Parle Products said, ?We are already reeling under rising input costs and inflationary pressures. Hike in excise duty now will add to our costs. There?s no question of absorbing anything now. We are certainly looking at price hikes.? To offset the higher cost of inputs, many FMCG majors had already taken selective price cuts two months ago.
According to Harsh Agarwal, director, Emami Ltd, the company is looking at price hikes wherever it is possible. ?We will be taking a final call in the next few days,? he added. However, there are some FMCG players who feel that the hike in excise duty will not have a major impact on their business. ?The hike in excise duty has not impacted our business. But, the rising inputs costs will hit us. So, we are planning to take price hikes ,? said Chittaranjan Dhar, CEO of ITC Foods.