Soaps to biscuits to cost more as palm oil, wheat turn dear

Companies may balance direct price hikes with grammage cuts to mitigate the impact of costs on consumers

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imported crude oils, prompting local edible oil sellers to raise prices. Meanwhile, wheat flour and cocoa too have seen significant inflation. Biscuit maker Parle has begun raising the prices of some products and pack sizes.

"Across foods, we will see companies take between 5% to 7% price hikes; some have already started doing that. However, with the kind of increase we have seen (in commodities), this price increase will not be sufficient to mitigate inflation fully. The reason behind this is that edible oil is up 40-45% versus last year, while wheat flour is up 20-25% compared with last year. Sugar prices are up, too," said Mayank Shah, vice-president, Parle. Price hikes will roll out over the next two to three months, Shah said.

Companies will likely balance direct price increases with grammage reductions to mitigate the full impact of rising costs on consumers, Shah added.