NEW DELHI: Welcome back to shrinkflation, where manufacturers reduce pack sizes to make up for costlier ingredients. Alongside, direct price hikes are taking effect too.
Packaged consumer goods makers Britannia Industries Ltd, Parle Products Pvt. Ltd, ITC Ltd and Godrej Industries Ltd are working on reducing pack sizes—grammage in industry parlance—or nudging up prices. As key raw materials such as wheat and oil cost more, prices of biscuits, cakes, soaps and packaged staples are expected to rise as much as 7% in the coming quarters, industry executives said.
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