ITC may hike packaged foods prices by 8 pc soon

Mumbai, Feb 2 (PTI) With rising input costs and highfood inflation, tobacco giant and FMCG major ITC today said itmay soon hike prices of its packaged foods by 7-8 per cent.

"Prices of agricultural commodities are increasing. Priceshave risen by 30-35 per cent in the past two years. There isalso a simultaneous rise in freight rates and packaging costs.

We may increase prices of packaged foods by 7-8 per cent,"ITC Foods Chief Executive Chittaranjan Dar told reporters onthe sidelines of a CII summit here.

ITC makes and sells packaged foods under brands such asAshirwaad, Sunfeast, Yipee (noodles) and Kitchens of India(ready to eat foods).

On growth in the business of packaged foods segment, Darsaid that company was looking at a 14-15 per cent growth in FY12.