Consumer will have to shell out more from their pockets this September. After pulses, vegetables, edible oil and sugar, consumers will have to dole out a little extra on biscuits too. The Indian Biscuits Manufacturers? Association (IBMA) stated that biscuits will get dearer from September 1 as the association is set to raise prices by 10% to cope with the rising input cost.
Speaking to FE by phone, IBMA president BP Agarwal said, ?We will raise biscuits prices by 10% with effect from September 1, 2009. However, the packaging size will remain untouched.?
Soaring food prices coupled with weak monsoon has forced the biscuit industry, especially small and medium enterprises (SMEs), to pass on the burden to the consumers. Priyagold, Anmol, Duke, Bonn, Cremica, Apsara and Crown will raise MRP from next month.
Sugar prices have gone up by 35%, maida by 8%, vanaspati by 41%, butter by 37% and skimmed milk by 36% between January and August which has compelled the small and medium enterprises biscuit makers to take immediate steps to cut down their cost of production. The association has written to the government requesting to either take measures to curb prices of raw material or release maida and sugar at concessional rate to the biscuit makers.
?If the government provides the raw materials at concessional rates, they will not raise the biscuit prices,? Agarwal added.
The biscuit makers have also urged the government to bring down value added tax (VAT) from 12.5% to 4%.