Varun Berry, managing director of Britannia Industries said a 3-4 per cent price increase across categories is on the cards.
"We will have to take a price increase. We have covered wheat quite well but at some stage this struggle is going to finish off. Yes there is going to be inflation as far as wheat is concerned, so we will have to plan price increases," said Berry. "It's probably going to be 3-4 per cent price increase starting Q4 across categories on an average.”
An ITC spokesperson said the atta market prices respond to the prevailing prices of wheat, which in turn is driven by the current wheat stock position in the country.
".. The prices of Aashirvaad Atta and its variants accordingly get corrected in a calibrated manner over time," the spokesperson said.
In just a month, wheat prices in India went up by 6.3 per cent while international prices (Cbot) went up 13.4 per cent.
According to Hetal Gandhi, Director, Crisil Research, the burden starts pinching smaller players when the biggies think of passing on the prices.
"Many of the manufacturers, mostly SMEs, are resorting to buying excess wheat and flour to insulate themselves against the rising prices resulting in higher working capital needs. Unorganised players, consisting of small players like local bakeries and snack shops, are expected to be more affected with the sharp rise in wheat prices as they do not have a strong procurement chain and have limited ability to pass on the rise in input costs," Hetal said.