Parle Products Raises Cookie Prices 5-10% As Input Costs Soar, Retail News, ET Retail

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Leading food company Parle Products increased prices by 5-10% across all categories as the cost of inputs rose significantly after the price hike for raw materials, such as sugar, wheat, and edible oil, a company official said. In the cookie segment, Parle, which owns popular brands such as Parle G, Hide & Seek and KrackJack, increased prices by 5-10% and 7-8% in the rusks and cake segments, respectively.

The price of its most popular glucose cookie, Parle G, is now up 6-7%.

“We took a 5-10% price hike,” Mayank Shah, Senior Product Category Manager at Parle, told PTI.

The company has raised the prices of cookies and other products above Rs 20 and reduced the grammage below to keep the prices attractive, he added.

This is the first increase for Parle in this exercise. Earlier, in the January-March 2021 quarter as well, the company opted for a price hike.

“This is after considering the inflationary pressure on the cost of inputs that we are facing. Most businesses are facing it,” he said.

The company faces inflationary pressure, as the prices of inputs such as edible oil rose 50 to 60 percent from last year, he said.

“If we look at wheat and sugar, both are up 8-10% from last year,” Shah added.

Earlier this month, rival Britannia Industries said it was witnessing “unprecedented inflation” in market prices for palm oil, industrial fuels and packaging materials and had also initiated the price increases needed across the portfolio.

Several FMCG companies operating in the food space are facing the inflationary trend in commodity prices as well as increasing transportation shifts due to increasing fossil fuel prices.

Most of them have revised prices, largely passing them on to consumers to maintain margin levels.


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