Soap, biscuit prices may rise after Diwali

Hindustan Unilever (HUL), Britannia, Dabur and Tata Consumer are considering raising prices on everyday items such as soap, biscuits, noodles and packaged foods after Diwali, citing rising raw material costs. Some companies may increase prices on select products from December.

Companies had previously passed on limited cost pressures by reducing pack weights, but that option is narrowing, especially for low-priced items like the Rs 10 Parle-G biscuit packet. Britannia, HUL, Dabur and Godrej Consumer had already raised prices by 2 to 5% in the June quarter. Tata Consumer raised tea prices by 8 to 10% between June and September and hiked a salt packet from Rs 30 to Rs 34 in two steps.

The cost of plastic packaging has risen 40%, adding to pressure on total costs. Datum Intelligence founder Satish Meena said companies absorb higher costs for a time before passing them to consumers. Lower-income families, who spend a larger share of their budget on daily essentials, would be most affected.