In just a few days, the Union Budget 2025 is going to begin. But before that, the big update came to light. In the next few days, everyday kitchen expenses might take a hit as FMCG companies are likely to raise prices on items like tea, soap, and body wash. This comes as a response to the fluctuating prices of commodities, with FMCG firms warning that we could see even bigger price hikes on these essentials.
Crude palm oil, a key ingredient in soaps, shampoos, detergents, cosmetics, and food, is experiencing price swings. Because of the rising costs of palm oil, companies are gearing up to increase the prices of basic goods we use daily.
Hindustan Unilever Limited (HUL), the biggest FMCG player in the country, recently shared its third-quarter results. They noted that palm oil prices have shot up by 40% compared to last year in the December quarter. Meanwhile, tea prices have risen by 24% year-on-year, although they dipped by 7% from the previous quarter.
Prices are set to rise
Companies such as HUL and Godrej Consumer Products Limited (GCPL) have already implemented price hikes in the December quarter. Additionally, Godrej Consumer Products, known for brands like Cinthol and Godrej soaps, as well as hair color and hand wash, announced plans to adjust the prices of its laundry products in response to the increasing costs of raw materials.
Moreover, Hindustan Unilever Limited (HUL) indicated that some product prices have already gone up and may see further increases. Meanwhile, Godrej Consumer Products Limited mentioned in its quarterly report, “The inflation in palm derivatives continues to exert pressure on the company’s costs; there has been a notable price increase across the entire portfolio, which will keep the company’s margins under strain in the coming months.”