Indian Confectioners Feel The Pinch As Food Inflation Quickens

Prices of key raw materials such as flour, sugar, oil and milk are shooting through the roof. In this article, BMI examines the impact of food inflation on the Indian confectionery industry. Intensifying food inflationary pressures are likely to place considerable downward pressure on the confectioners' price competitiveness and could prompt an increasing number of industry players to pass the price burden on to Indian consumers, potentially causing a widespread increase in confectionery prices. That said, we do expect the impact of an industry-wide price hike on Indian consumers to be rather minimal given our upbeat outlook on the Indian economy and the consumers' rising purchasing power.

To read the full article, please choose one of the following options: