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NEW DELHI : Biscuit maker Britannia Industries Ltd, said it will have to take  “tough calls" and initiate price corrections as inflationary headwinds continue to persist.

In the last fiscal, the maker of Good Day biscuits and packaged cheese hiked prices by 10%.

Major factors for the inflation include the Ukraine-Russia conflict, which has shrunk global wheat supplies, and the more recent ban on Indonesian palm oil exports. 

The packaged foods company could initiate further price hikes as key commodities, including edible oil, wheat, and sugar become costly, managing director Varun Berry said  during the company’s post-earnings call on Wednesday.

The company estimates that it will have to increase prices by another 10% this year if spot prices of key commodities persist in the current fiscal. “We really have to be on our toes and take calls on a month-to-month basis," Berry said.  “So, while we will try and be judicious about it and make sure that it does not impact the consumer in a big way,  we will have to take some tough calls," he said.

It will also rely on reducing grammage in its packs instead of directly hiking prices. For Britannia, grammage cuts might account for more than 60-65% of price hikes in FY23, said analysts. Firms are facing unprecedented raw material inflation with prices of everything from packaging to freight and edible oil moving up.

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