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Price points & grammage
What it is
Selling at fixed price points - Rs 5, Rs 10, Rs 20 - and adjusting pack weight rather than price when input costs move. The consumer recognises the price, not the grammage
It is the standard mechanism for managing inflation in mass-market packaged foods
Impact on industries
- Preserves the price point that drives trial and repeat purchase in price-sensitive rural and small-town markets
- Grammage adjustment is a faster and less visible margin lever than a price increase, and avoids the volume shock of repricing
- There is a floor - grammage cannot fall indefinitely before the pack loses credibility, after which price must rise
- GST 2.0's cut to 5% on many packaged foods created room to restore grammage rather than cut prices, so the benefit may not reach the consumer visibly