Biscuits turn costlier

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Biscuit prices are heading upward. Leading biscuit manufacturers have raised prices in the range 2% to 10% to encash festival demand.

We can review the price fluctuation of some inputs. Raw materials like sugar, edible oil and wheat have dropped significantly during the last couple of months. However, costs of milk products, cocoa, cashew and several other commodities have been raising continuously. The total value of the biscuit industry in India being Rs.12000 crore and this industry has been growing at 10% to 12% annually. The biscuit makers don't foresee any dip in consumption because the price hikes at the entry level remain constant .

Only Britannia initiated an intensive cost effectiveness programme to minimise the impact of input cost rise in the consumers.

The biscuit makers and dealers have to bear major cost effect to sustain the consumption. People are already experiencing the mismatch of income and expenses.

Shobana Senthilnathan