How commodity price inflation is prompting FMCG firms to increase prices

The last of a two-part series looks at how commodity price inflation is prompting firms to increase prices

A few months ago, Suresh Narayanan, chairman and managing director of Nestlé India, told Business Standard that he was worried about the rising prices of agri-commodities such as milk and sugar, which indicated that there were inflationary pressures on the horizon. Commodity prices needed to cool down in 2020 to revive growth in the already struggling fast moving consumer goods (FMCG) market, he said.

However, with commodity price inflation showing no signs of heading down, price hikes on a host of FMCG products are on the cards. And this may stymie the chances of a revival in the sector any time