Coronavirus pandemic | Top food companies to not raise product prices despite jump in costs: Report
Companies are facing supply chain disruptions due to the nationwide lockdown.
March 31, 2020 / 01:09 PM IST
The Brand Footprint Report 2020 from the from worldpanel division of Kantar has listed the most popular brands in India. The study ranked the brands on the basis of consumer reach points (CRP) recorded in a year. Over two-third of the top 50 brands are Indian origin brands (36) while global stands at 14. (Image: Reuters)
Some food companies such as Parle Products, ITC, and Adani Wilmar have said they will not raise the cost of their products even as their profits take a hit during the coronavirus outbreak, according to a report by The Economic Times.
Food manufacturers are facing increasing cost pressure from disruptions in both production and supply due to the nationwide lockdown. Companies are permitted to supply essential items only during this period.
Moneycontrol could not independently verify the story.
Authorities had initially restricted the movement of trucks and personnel after the lockdown began on March 25.
“We expect operations to be back on track in the next 5-7 days in terms of the supply chain,” Mayank Shah, category head at Parle Products told The Economic Times.
“At this point, we are focused on making and delivering products, and (there is) absolutely no focus on profitability,” Shah added.
ITC, too, said it will not raise the cost of essential items. The company said it is continuing manufacturing and distribution with limited staff.
"While we have progressively obtained permissions in some states, availability of trucks continues to be the biggest challenge at the moment,” an ITC spokesperson told the publication.
Angshu Mallick, Deputy CEO, Adani Wilmar said there is a shortage of truck drivers and factory workers.
“We have also seen 50 percent rise in freight rates and significant pressure from currency devaluation, too,” Mallick told the paper.