This summer, sweet things like ice cream and chocolate can be heavy on your pocket. Due to the ongoing geopolitical tension in West Asia and disruptions in the supply chain, the costs of companies are increasing, the effect of which is now visible on the prices.
Sharp rise in the prices of raw materials
According to people associated with the industry, the prices of essential raw materials like dry fruits, nuts and cocoa have increased by 1522%. All these things are very important for the taste and quality of ice cream and chocolate. In such a situation, due to increase in costs, pressure on the margins of companies has increased.
Logistics and packaging also expensive
Not only the raw material, but the cost of transportation and packaging has also increased. Due to the impact of supplies coming via sea routes, there is a delay in the delivery of goods, due to which it has become difficult for the companies to manage the expenses.
Companies started increasing prices
Naturals Ice Cream has already increased the prices of its products by an average of 10%. Company director Siddhant Kamath says that the cost has increased due to shortage and delay in supply of dry fruits and cocoa.
Mother Dairy has also increased the prices of some of its ice cream products. According to the company’s Managing Director Jayateertha Chari, this decision has been taken due to global commodity prices and increasing logistics expenses.
Pressure on profits, compulsion to increase prices
Jarvin Rana, director of Dinshaw’s Dairy Foods, says that at this time the profits of the companies are being affected the most. In such a situation, it has become almost necessary to increase the price.
Prices may increase further
At present, the companies are not passing the entire cost on to the customers, but if the problem in supply continues, then the prices of ice cream and chocolate may increase further in the future. Overall, eating sweets this summer may be a bit expensive and consumers will have to be prepared for it.
