Higher input cost bites into biscuits manufactures' profits: TPCI

Source :IANS
Author :IANS
Last Updated: Sat, Jun 27th, 2020, 11:09:48hrs
Biscuits

New Delhi: The increase in commodity prices coupled with rising refined palm oil cost is eating into the margins of biscuit manufacturers in India.

According to Trade Promotion Council of India's Chairman Mohit Singla, Indian biscuits manufacturing segment is going through a turmoil and disruption on account of increased input cost to the tune of 35 to 40 per cent in recent past.

"The industry is not able to honour contract on the agreed pricing, as the purchase of raw material such as wheat, refined palm oil and sugar have shot up," he said.

"The biggest worry is despite having a good harvest and sufficient stocks, the prices of wheat and sugar are still rising. A slight rise in the input cost can lead to the fear of shortage, the disruptive pricing trends is surely a reason to worry as this is a reality for other sectors as well."

In 2019, India exported $181 million worth of biscuits to markets such as US, EU, Russia and African countries.