A big and disturbing news to everyday life is coming out. If you also bring home ration, then get ready to burn a little more in your pocket. FMCG products used every day in the country – like bath soap, edible oil and biscuits eaten with morning tea – are soon going to become costlier. In fact, the skyrocketing prices of raw materials and increasing cost of production have given sleepless nights to FMCG (Fast Moving Consumer Goods) companies and now it is going to have a direct impact on the pockets of common customers.

There was a huge jump in the prices of raw materials

The biggest reason behind this possible inflation is the huge increase in the prices of raw materials. In the recent past, the prices of palm oil and the materials used in packaging have increased rapidly. Due to these essential items becoming expensive, the total production cost of companies has increased. The companies clearly say that if the prices of raw materials remain high, then they will have no other option but to increase the prices of their products to maintain their profits.

Expenses of transport and logistics increased tension

Not only the raw material, but also the cost of transporting the goods from one city to another has become a major cause of trouble for the companies these days. Due to fluctuations in the prices of petrol, diesel and fuel, the cost of transportation and logistics has increased significantly. Ultimately, the consumers will have to bear the ultimate burden of this increased cost of delivering goods from factories to stores.

‘Smart’ strategy of companies: Packet is small, price is same

To avoid angering customers by directly increasing MRP, many companies are currently working on other strategies. Instead of directly increasing the price, they are making changes to the packaging—that is, reducing the weight or quantity of the product for the same price. Apart from this, discounts and offers on packets are also being cut. However, market experts believe that this strategy alone will not work in the long run and ultimately the MRP will have to be increased.

There will be a direct hit on the common man’s pocket.

The biggest hit of this inflation is going to be on the household budget of the common people and the middle class. Things like soap, oil and biscuits are the basic and everyday needs of every household, buying which no one can avoid. In such a situation, due to increase in the prices of these essential goods, the household budget of the month will be badly affected.

What should customers expect next?

Experts believe that if there is no relief from the prices of raw materials in the global and domestic markets soon, then new and increased prices of FMCG products may be seen in the coming few months. At present, all the big companies are keeping a close eye on the market situation and are reviewing their profits and costs from time to time.