Ice cream and chocolate prices are likely to increase as manufacturers face higher input costs linked to tensions in West Asia, according to industry sources.
The report cites the US-Iran standoff as contributing to global fuel constraints, which in turn has raised logistics expenses. Companies say air freight costs for imported consignments have gone up.
At the same time, key ingredients used for flavouring and production—such as cashews, pistachios and other dry fruits—have become costlier, squeezing profit margins. Compared with the pre-war period, prices of nuts and dry fruits are said to be up by around 15% to 22%.
With summer being the peak season for sales, the spike in raw material prices has hit the sector hard. To manage the impact, several ice cream and chocolate makers have already announced a price increase of about 10%, including higher MRP on packs.
Industry owners said the combination of costlier ingredients and rising transport charges leaves them with limited options other than raising retail prices.
