that raw material costs are under control at present, the company said value
added tax (VAT) on food items is a cause of concern.
"I believe in
the next 2-3 months, input costs will go up by up to 3%," ITC Foods CEO
Chitranjan Dhar told reporters here. He said the company's products are not
likely to become dearer for consumers in the near future.
"We do not
expect any great increase in prices barring a few exceptions...90% of our
products will not be impacted in terms of price hikes," Dhar added.
VAT on food products he said : "More than the commodity prices, differential VAT
rates across states are a problem."
analysts, prices of key food commodities such as sugar, wheat and vegetable oil
have been stable for some time now.
"There is no pressure on food companies to
increase product prices," Motilal Oswal Financial Services Analyst Amnish
Moneycontrol.com, India, dated