Consumers May Not See Price Drops Right Away
So, if you were hoping that your daily ₹5–20 snack packs or personal care items would suddenly get cheaper after the GST cut, here’s the reality check. Leading FMCG companies are saying that the small tax reduction won’t really change the prices of these tiny packs. And honestly, it makes sense once you look at the bigger picture.
What’s Happening Behind the Scenes
The government recently slashed GST on some essential FMCG items to help reduce inflation. On paper, this sounds great, but companies argue that the savings from GST are tiny compared to all the other costs they bear.
Think about it: raw materials aren’t getting any cheaper, transportation costs have gone up, and packaging isn’t free either. For small packs, the margins are already super tight, so there isn’t much room to drop prices.
What FMCG Firms Are Saying
- Production costs are rising every year, leaving little room for discounts.
- Distribution and supply chain expenses continue to climb.
- Packaging materials have become more expensive, adding to overall costs.
A spokesperson from one of India’s top FMCG brands said, “We welcome the GST reduction, but small packs have very little leeway. Cutting prices drastically would hurt our business sustainability.”
Expert Insight
Economists suggest that while larger packs may see a slight reduction in prices, ultra-affordable small packs won’t benefit immediately. Dr. Ramesh Kumar, a consumer economics expert, explains, “Small pack pricing is sensitive to cost changes. GST cuts alone aren’t enough to change their MRP significantly.”
Why This Matters
For many people, these small packs are daily essentials. Unfortunately, you might not notice a price drop anytime soon. But medium and larger packs could become slightly cheaper over time. From a business standpoint, FMCG companies need to balance affordability with sustainability otherwise, profits and supply chains could suffer.
What’s Next
It looks like any price benefits will be gradual. Companies will continue to monitor costs, market trends, and raw material prices before deciding whether to adjust MRPs. At the same time, policymakers might consider additional measures if inflation continues to bite.
Bottom Line
The GST cut is a step in the right direction, but don’t expect immediate relief on ₹5–20 packs. Rising production, packaging, and logistics costs keep these prices steady. For now, bigger packs might offer small savings, but the tiny essentials we use daily will likely stay at current rates.
