Pocket pinch: FMCG companies passing 3-7% of price rise to consumers

Edible oil companies pass on the entire hike to consumers

Fast-moving consumer goods (FMCG) companies are increasing prices but are not passing on the entire price hike to the consumer as rural markets have just about begun to witness revival while urban demand is stagnating.

 

While edible oil companies typically pass on the entire price increase/decrease to the consumer, with a lag of 5-15 days, depending on the inventory in the channel, packaged food companies are effecting mid-single-digit increases in order to not hurt demand.

 

“We’ve already initiated some price increases. We are looking at a 3-5 per cent price increase between the third and fourth quarters. Some of it