Get ready to pay more for biscuits, snacks and ice-creams as fast-moving consumer good (FMCG) companies are hiking the prices due to rising input costs. Household names like Britannia, Amul, Dabur and Parle are either raising the prices of their products or providing lower quantities at the same price-point, The Economic Times reported on Monday. Input costs for these companies have gone up. Ingredients like skimmed milk powder prices have moved from Rs 140 a kg last year around the same time to over Rs 240 a kg now. Besides, prices of sugar, too, have risen by around 30-40 per cent, and milk fat prices have grown by around 35 per cent, say companies. Palm oil, another key input, has also seen its prices go up. According to the ET report, the culprits are fluctuations in global commodity prices and lower production cycles. This comes at a time when such companies have already been hit by demonetisation. As reported earlier, data shared by Kantar Worldpanel, part of the WPP Group, show that FMCG sales growth by value declined to 5.3 per cent in the December quarter after cruising comfortably in the first three quarters of calendar year 2016. Sales growth by value for the quarters ending March, June and September 2016 was 6.2 per cent, six per cent and 8.3 per cent, respectively.
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