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FMCG firms' margins may face pressure next quarter as commodity prices rise

This comes even as raw material prices cool

The FMCG sector lost out despite a doubling in the number of FMCG companies in the index in the last three years.
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Consumer companies will also continue to increase rates as they have been taking price hikes in a staggered manner.

Sharleen D’Souza Mumbai
Even as raw material prices start cooling off from their peaks, fast-moving consumer goods (FMCG) companies’ margins are expected to remain under pressure at least in the next quarter.

This is because commodity prices continue to remain high year-on-year (YoY).

Consumer companies will also continue to increase rates as they have been taking price hikes in a staggered manner. They have not yet passed the entire price increase of raw materials to consumers.

Commodity prices of crude palm oil at Kakinada port are still higher by 12 per cent while at Kandla port they remain up by 8.8 per cent.

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First Published: Jun 27 2022 | 12:54 AM IST

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