Consumer food companies are holding back routine price increases despite mounting raw-material costs, as firms remain cautious in the aftermath of recent GST rate cuts. Executives in categories such as biscuits, packaged foods, dairy and household staples said any upward revision in prices may invite government scrutiny over potential profiteering.
Industry leaders said that most companies are expected to avoid price changes until at least March 2026 as the government continues to push for stronger consumption. A sales head at a leading biscuit manufacturer said firms are likely to maintain current pricing despite inflationary pressures.
While companies in unaffected GST categories—such as detergents, cosmetics and certain household products—technically have room to raise prices, food and FMCG players are opting for restraint. Many leaders say protecting consumer trust and ensuring stable demand remains a priority, especially in mass-market categories.
Nestlé, for instance, has made only marginal price adjustments in select cities for products like packaged yoghurt, a category untouched by GST revisions.
Executives added that the volatile rupee and higher global commodity prices are adding to cost pressures, but companies prefer to absorb short-term margin hits rather than risk regulatory backlash or dampen consumption.