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The Ukraine conflict has pressured FMCG firms to consider another round of price hikes to offset an unprecedented rise in commodity prices. The ongoing war between Russia and Ukraine has added another blow to FMCG makers as they expect a rise in the prices of wheat, edible oil and crude oil. The future of retail is converging of physical and digital, and the government should provide easier access to loans to the small retailers, who lack resources for their modernisation.
This week’s edition of “Indian Retail at a glance Glance” explains the actions being taken by FMCG sector to handle the scarcity resulting from War and mitigating inflationary pressures.
Ukraine Conflict To Likely Result In 10% Higher Prices For Fast Moving Consumer Goods

The escalating Russia-Ukraine conflict has pressured fast-moving consumer goods (FMCG) companies in India to consider another round of price hikes to offset an unprecedented rise in commodity prices such as wheat, palm oil and packaging materials.
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FMCG makers to go for around 10% price hike to mitigate inflationary pressures
Consumers may have to pay more for their daily essential items with FMCG companies mulling another round of price hike to offset the impact of an unprecedented level of inflation in commodity prices such as wheat, palm oil and packaging materials.
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FMCG cos should increase margins for Kirana stores: METRO Cash & Carry India MD 
FMCG makers, earning higher profits on their products, should consider increasing the margins for small retailers selling their goods, said METRO Cash & Carry India MD & CEO Arvind Mediratta. 
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Companies reduce sanitiser manufacturing as demand drops
Sales of sanitisers surged during March-May last year with the onset the second wave, but started witnessing a decline in following months, forcing certain large companies to completely exit the category and the smaller ones to shut shop.
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Channelier FMCG Awards 2021 Honour India's Best FMCG Brands
India’s first and biggest networked distribution management platform, Channelier hosted the Channelier FMCG Awards, one of the World’s biggest accolades honouring the brands and products of consumer goods companies.
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HUL's acquisition of MDH could be a win-win deal
After completing its successful merger of health drinks major GSK Consumer Healthcare in 2020, the Mumbai-headquartered firm is now in talks with the Delhi-based MDH Group that lost its founder about a year ago. As per estimates, the deal could turn out to be one of the largest in the sector since the GSK acquisition. 
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Nestle India Ltd gains for third straight session
Nestle India Ltd is quoting at Rs 17662.95, up 1.15% on the day as on 12:54 IST on the NSE. The stock is up 7.34% in last one year as compared to a 14.88% jump in NIFTY and a 8.43% jump in the Nifty FMCG index.
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Demand, inflation woes still haunt HUL stock
The relentless escalation in costs for fast moving consumer goods (FMCG) companies has come at a time when the demand environment is sombre. Some companies are likely to be more hurt than others, and HUL’s relatively high exposure to raw materials such as palm oil, and crude oil and its derivatives makes it more vulnerable given the surge in prices following the Russia-Ukraine conflict.
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