Nestle India Limited has increased the prices of its goods as the cost of commodities like milk and coffee has risen in the last six to eight months. Some Nestle products have had their prices raised by 1% to 3% in response to growing costs.
Nestle India Chairman and MD Suresh Narayanan stated recently at a news conference that raw resources are under “pressures” because of the robust recovery of large economies around the world.
“The forward pressures are likely to be more acute than what we are currently experiencing,” Narayanan stated.
He went on to note that products like milk, coffee, and packaging have all witnessed a 4% to 5% increase as economies continue to open up.
Along with packing materials and crude oil, Nestle India’s CEO said the first half of 2021 was more secure and subdued in terms of commodity pricing. He went on to say that the price of milk and wheat has remained steady.
Suresh Narayanan, on the other hand, believes that 2022 would be a challenging year because of the anticipated rise in commodity costs, which will lead to higher food inflation for manufacturers.
Milk prices have certainly risen, according to the USDA “During the virtual conference, Narayanan revealed all. Because of the pandemic’s impact on Vietnam, the world’s largest producer of coffee, worldwide coffee prices are now rising “very dramatically.”
Although the majority of Nestle India’s raw ingredients are sourced domestically, Narayanan said there will “certainly” be an impact and that is an area the business is watching out for.