Common people in the country may soon face another big shock of inflation. There are indications of increase in prices of food items and personal care products. Companies say that the cost of raw materials and packaging materials is continuously increasing, due to which it is becoming a compulsion to increase the prices of products.
According to industry experts, there has been a huge jump in the prices of many materials used in packaging in the last few months. Especially the cost of plastic, paper, aluminum and other packaging materials has increased by 56 percent. This is having a direct impact on the production cost of FMCG companies.
Companies say that the prices of raw materials used in the manufacturing of soap, shampoo, toothpaste, biscuits, snacks, oil, spices and other daily use items are continuously increasing. Apart from this, transportation and logistics expenses have also increased significantly compared to before. In such a situation, a big challenge has arisen before the companies to maintain profits.
Many big companies in the FMCG sector have already indicated that the prices of some products may be increased in the coming months. Some companies may also adopt the strategy of reducing the weight of the packet instead of directly increasing the price. That means consumers can get a lesser quantity of product at the same price as before.
Experts believe that fluctuations in crude oil prices in the international market and problems in the global supply chain are also responsible for this situation. Its biggest impact is being seen on the packaging industry. The cost of products like plastic resin, cardboard and metal containers has increased rapidly, increasing the expenses of companies.
The effect of inflation can be clearly visible on the pockets of common consumers. It is already becoming difficult to manage the kitchen budget and now due to the cost of daily essentials, the financial problems of the families may increase. Especially the people of middle class and low income group are likely to be affected more.
According to economic experts, if there is no relief in the prices of raw materials soon, then the prices of many products in the market may increase further in the coming time. Although some companies are also working on alternative packaging and supply management to reduce costs, at present there seems to be little chance of relief for consumers.
Market experts say that the increase in prices before the festive season may also affect sales. On one hand, companies are struggling with cost pressure and on the other hand, they are also facing the challenge of retaining customers. In such a situation, big changes may be seen in the FMCG sector in the coming months regarding prices and packaging.
