FMCG prices up on higher input costs

The rise in raw material costs has caused a 10 per cent increase in the retail prices of fast-moving consumer goods as companies are passing on the rise in costs.

In the last few weeks, the price of the 100 gram bar of Godrej No 1 has gone up by Rs 2.5 to Rs 13, Wipro's Santoor by Rs 2 to Rs 16, Reckitt Benckiser's Dettol by Rs 2 to Rs 17 and Hindustan Unilever's Pears by Rs 2 to Rs 23. Even mass market brand Lifebuoy, the largest selling, has become costlier by Re 1 to retail for Rs 12.

Food items, too, have become costlier. "We had increased milk prices in February 2007, August 2007 and then again in February 2008 � each time by Re 1. We also raised the prices of select items such as ice-creams by 1-2 per cent in February," said R Sodhi, chief general manager, Gujarat Cooperative Milk Marketing Federation, which markets the ubiquitous Amul.

Procter & Gamble's Ariel detergent now costs Rs 122 for a 1 kg pack, a rise of Rs 6, while HUL's Surf Excel's price is up at Rs 126, costlier by Rs 10. In some cases, the prices have remained unchanged but packs have become lighter. The 1 kg pack of HUL's Wheel washing powder has shrunk to 800 gm.

However, HUL has bucked the trend in the case of Lux, its flagship soap brand, deciding to roll back the 5 per cent price increase it had effected earlier.