The shock of inflation will come with tea! Britannia biscuits will be expensive due to Middle East tension

Knews Desk- If your tea remains incomplete without biscuits, then in the coming days you may have to spend more money for it. The country’s largest biscuit company Britannia Industries has decided to increase the price of its products and reduce the weight of some packets. The company says that this step has to be taken due to the increasing cost of raw materials and transportation.

Rakshit Hargave, Managing Director and CEO of the company, told in a conversation with investors that the prices of biscuits will be increased gradually from this quarter. Especially packets above Rs 10 can be expensive. Whereas the price of small packets of Rs 5 and Rs 10 will not be increased at present, but the quantity of biscuits available in them can be reduced.

Why are costs increasing?

According to Britannia, the cost of palm oil, packaging material, fuel and freight is continuously increasing. Due to ongoing tensions in the Middle East and supply chain disruptions, transportation costs have increased internationally. This is also affecting the food companies of India.

Although there has been some relief in wheat prices, the remaining costs have increased so much that it is becoming difficult for companies to maintain profits. The company said that the supply of palm oil for the next few months has been decided in advance, so that the impact of sudden price increase can be reduced.

International business also affected

Britannia’s foreign business has also been affected by this tension. According to the report, the company faced problems in exports due to the movement of ships being affected in the Strait of Hormuz. Due to lack of cargo ships, many products could not be sent abroad on time. For this reason, the company is now preparing to increase prices in international markets also. Also, to improve the supply chain, some production units are being shifted back from Oman to Mundra Port area of ​​India.

More focus on small packets

A major part of Britannia’s total sales comes from packets worth Rs 5 and Rs 10. The company believes that the demand for affordable packets is highest in rural and small markets. Currently, the company is working on a strategy to reduce weight while keeping the price stable.

Experts believe that in the coming time, other food companies may also take similar steps, due to which everyday food items may become more expensive.