FMCG firms to hold prices despite input cost rise

Nifty23, 346.4075.81. Motilal Oswal Midcap Fund Direct-Growth.

Key points

• The Economic Times daily newspaper is available online now.
• FMCG firms to hold rates despite rise in commodity costs; prioritise volume expansion.
• FMCG cos are probable to hold costs through the festive season despite rising commodity costs and geopolitical disruptions.

Nifty23, 346.4075.81. Motilal Oswal Midcap Fund Direct-Growth. The Economic Times daily newspaper is available online now.

FMCG firms to hold rates despite rise in commodity costs; prioritise volume expansion. PTILast Updated: Sep 20, 2026, 07: 44: 00 PM IST.

FMCG cos are probable to hold costs through the festive season despite rising commodity costs and geopolitical disruptions. After modest 2-5% cost hikes, firms are prioritising consumer demand and volume expansion over margins. Though further cost corrections may follow, industry executives remarked cost management and operational efficiencies will assist absorb inflation. Listen to this article in summarized format. Unlock AI Briefing and Premium Content. New Year Offer 24 Hours Left. Subscribe Now Already a member? Sign In.

As they seek to protect consumer demand and maintain volume expansion against the backdrop of improving consumption, new Delhi: FMCG firms are probable to hold rates through the festive season despite a rise in commodity costs, including sugar, and the impact of geopolitical disruptions. Leading industry executives remarked businesses have already gone for judicious increases of around 2-5 per cent in the June quarter to partly offset higher input costs and are unlikely to raise rates further before the end of the festive season, even as margins remain under pressure. The sector has been facing renewed cost pressures, with sugar rates touching a new high, alongside a sharp rise in costs of key inputs such as edible oils, coffee, cocoa and crude oil derivatives applied in packaging, against the backdrop of geopolitical disruptions and supply reservations in global markets.

Taken together, the developments around FMCG firms to hold prices despite input cost rise point to a situation that is still moving, and the coming days should bring more clarity.