Archive · 7 Dec 2025
FMCG Input Costs Show Mixed Trends
Some things that companies use to make their products are getting cheaper, like milk and oil from ships.
But other things, like sugar and coffee, are getting more expensive.
This makes it tricky for companies to decide how much to charge for their products.
Some companies, like the one that makes Parachute coconut oil, had to raise their prices a lot because the cost of copra (dried coconut) went up.
But now, copra prices are starting to go down, which might help them lower their prices again.
Other companies, like the one that makes biscuits, say that sugar prices are okay for now, but they're worried about the value of the rupee, which could affect how much they pay for things like palm oil and cocoa.
Overall, it's a mixed situation, with some costs going up and some going down, which affects how much money these companies make.
Prices of key FMCG inputs are moving in opposite directions, affecting profit margins.
Edible oils like copra and palm oil show volatility, with copra prices declining 6% in the ongoing quarter but up 60% year-on-year.
Sugar prices have risen 8% year-on-year due to tight supply, impacting categories like confectionery.
Coffee prices surged 18% quarter-on-quarter and 46% year-on-year, while cocoa prices have decreased 8% month-on-month.
Dairy and crude oil segments show relief, with skimmed milk powder and crude oil prices declining, easing costs for packaging and logistics.
- Who
- FMCG companies such as Hindustan Unilever, Marico, and Parle Products
- What
- Mixed trends in input costs affecting profit margins
- When
- Current quarter and upcoming quarters
- Where
- India
- Why
- Divergent price movements in key commodities and packaging materials
- Copra Price Change
- 6% decline in ongoing quarter, 60% year-on-year increase
- Palm Oil Price Change
- 2% rise in October-November, 4% lower year-on-year
- Sugar Price Change
- 8% year-on-year increase
- Coffee Price Change
- 18% quarter-on-quarter, 46% year-on-year increase for Arabica
- Cocoa Price Change
- 8% month-on-month, 26% quarter-on-quarter decrease
- Crude Oil Price Change
- 10% year-on-year, 5% quarter-on-quarter decrease
- GST Implementation Date
- 22 September 2023
- Parachute Price Increase
- 60% over the past year