Parle plans to increase prices of glucose, Marie biscuits


One of major Biscuits and confectionery player in India, Parle Products will soon increase prices of its glucose, Marie and milk biscuits by 4-5 per cent in 2018. Parle Products Category Head, Mayank Shah said “As of now, we have not taken any price hike decision but we would be thinking of a price hike considering the increased taxes. It will happen in the first quarter of next year, which is January-March. There might be an increase of 4-5 per cent in the price in brands which are below Rs 100 per kg.”


Primarily, glucose, milk and Marie are the categories that will witness increase in prices adding that the company will probably look at one category at a time for the price increase. Parle G is dominant in the glucose segment, BakeSmith English Marie and Milk Shakti are the brands that would see a price revision.

The company had not increased the prices of these products post the implementation of the Goods and Services Tax (GST), when the government had slapped a uniform tax rate on biscuits.


Shah said “For mass category earlier we were taxed at a lower rate and now we are taxed at a higher rate, so there has been an impact there and mass offerings have suffered a bit. Growth has been slow in the biscuit below Rs 100 per kg category at 6-7 per cent, compared to the industry growth of 14-15 per cent. The company had crossed subsidised the premium varieties with affordable ones post GST.”


The total biscuit industry has recorded growth of around 14-15 per cent this year, with the mid-premium categories driving growth. “Biscuits have been able to overcome both demonetisation and GST. Biscuits were earlier taxed at a higher rate and now have been brought down below 18 per cent, have grown better. Because of the tax benefits (in biscuits above Rs 100 per kg) being passed on to the consumers, there has been a growth in consumption. Rural demand has also seen an uptick this year, with a growth of almost 60-70 per cent.”

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