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Farm to Fork: Food firms wait for commodity prices to cool further

The second of a four-part series focuses on how food companies are yet to pass on the benefit of the decline in input prices to consumers

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Higher prices have taken a toll on demand, leading to weak volumes for the industry.

Sharleen D’Souza Mumbai
Though commodity prices have moderated in the recent past, consumers may not stand to gain from it anytime soon, as food companies say that they are waiting for a further reduction in input prices before they pass on the benefit to consumers.  

The last two years of the pandemic have led to cascading effects of spiralling commodity prices, leaving food companies with no choice but to opt for multiple price hikes and grammage cuts of products ranging from snacks to biscuits to coffee.  

The companies res­orted to reducing grammage in smaller packs while taking direct price increases in large packs.