A rise in food prices especially sugar, milk and edible oils may force consumer firms to increase their product prices. Sugar prices have more than doubled in 2009. Companies which manufacture eatables are likely to increase their prices. Dabur India has already raised prices earlier in the fiscal and do not have plans to raise prices. Other companies which are contemplating price increase are Godjej Consumer, Marico Ltd and Nestle India.
For companies like Nestle India rising commodity prices especially milk and sugar poses a big challenge and are likely to increase their prices this fiscal. An analyst at Angel Broking said that it will be common trend particularly in food companies such as Nestle India, ITC and Britannia to increase their prices and the companies might prefer to reduce the quantity per pack instead of increasing the product price. But further increase in commodity prices might force food companies to increase their product prices.
Related posts:
- Indian Companies Invest in Agricultural Land Abroad Cheap land costs and increasing food prices have prompted Indian...
- Rise in Food Price Cause for Concern Food prices rose nearly 19 percent annually in the first...
- Issues: Food Inflation in India Inflation in India is calculated as a wholesale price index...
- No Takers for Gold Despite Price Decrease Gold prices are declining since past 10 days and have...
- Farm Production has to Grow by 9 percent in 2010 Though the Indian economy is set to grow by 7...
Related posts brought to you by Yet Another Related Posts Plugin.
