Rising production costs are putting pressure on consumer goods makers, but many are choosing to delay price hikes amid fears that any upward revision could trigger government action following the latest GST reductions.Executives from major firms in categories such as soaps, biscuits, detergents, automobiles and consumer electronics said they plan to approach the government and GST authorities, through industry associations, to seek clearer guidance on pricing, reported ET. Automakers — who generally revise prices in January and are currently dealing with higher imported-component costs due to the rupee’s depreciation — may push back those adjustments unless they receive clarity soon. Maruti Suzuki and Hyundai Motor are still reviewing their options.In the electronics segment, LG has chosen to hold prices steady for televisions and air-conditioners despite significant cost escalation, including global memory chip prices rising by as much as 60% and new AC energy rules from January requiring a 6–9% increase.A senior sales official at a prominent biscuit manufacturer said the broader expectation is that companies will refrain from pricing changes until March 2026 as the government focuses on boosting consumption.An executive at a large automobile company noted that while festive-season discounts have been rolled back, retail prices remain unchanged, even for models facing strong demand. “Usually, companies announce price hikes with effect from January to clear old stock of December. This time, however, supply itself is an issue. There is a waiting period on popular models. Demand has remained strong even post festive,” he said, as quoted by ET.Wipro Consumer Care said it intends to absorb rising costs for the time being, expecting higher sales volumes driven by GST-related price reductions to cushion margin pressures. “We are not planning to increase prices at least till January-end, or something like that. But it also depends on how competition behaves. If you ask me, are we willing to take a marginal margin cut for spurring demand, I would say yes,” said Vineet Agrawal, chief executive of Wipro Consumer Care and Lighting.Executives added that companies in segments unaffected by GST changes — including detergents, cosmetics, hair dyes and household insecticides — technically have room to increase prices but are proceeding cautiously. Nestle has made only minor price adjustments to packed yoghurt, a category with no GST revision, and has limited those changes to just two cities.
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