This Parvan will be a costly one. From toothpaste to paint, everything will go up in price from August. The country’s leading FMCG and consumer goods companies are preparing to increase the prices of their products just before Puja and for the second consecutive quarter. From toothpaste to tires, detergent, soap, dishwashing bars, salt and paint, and other daily necessities are going to become expensive. The current Parvan season could be costly for the common man. The cost of raw materials is increasing due to the ongoing war in the Middle East. The increase in crude oil prices has increased the production costs of companies. The war is in no way over. In such a situation, experts expect the problem of high prices in the country to continue for a long time.
Hindustan Unilever Limited (HUL), one of the country’s leading FMCG companies, has announced that it will increase the prices of home care products like detergents and dishwashing bars in the next quarter. At least eight companies, including HUL, Dodla Dairy and Asian Paints, have already planned to increase prices. Hindustan Unilever Chief Financial Officer Niranjan Gupta said that due to geopolitical instability, derivatives related to crude oil are becoming expensive. Due to this, companies are increasing prices in the home care segment.
Energy prices are high due to the Iran war. There is no immediate possibility of a reduction. With the war in sight, companies are planning to increase the prices of products ranging from home appliances to kitchen items. Havells India has already increased the prices of its products by up to 8%. Similarly, Tata Salt has increased the prices by about 7%.
This price hike is in line with the festival season. The Puja season in the country usually lasts from August to November. During this period, consumers shop in large quantities, especially during Diwali. For some companies, a third of their total annual sales are made during this time. Due to strong demand, companies will pass on the burden of their increased costs to the consumers. As a result, household spending will increase during the festival.
It is worth noting that in June, the consumer price-based retail inflation rate in the country crossed the 4% limit of the Reserve Bank of India (RBI) for the first time in about a year due to increased expenditure on food, beverages and fuel. Although this figure is within the RBI’s tolerance band of 2% to 6%. Inflationary pressures are likely to increase further in the coming days due to price hikes by companies and rising food prices due to weak monsoon. The RBI estimates that the average inflation rate for the current fiscal year is likely to be 5.1%.
