Maggi, a popular instant noodle brand in India, may experience a price rise due to a recent change in the trade relationship between India and Switzerland. Switzerland revoked India’s “Most Favored Nation” (MFN) status, which resulted in Swiss companies, including Nestle, facing a higher tax burden. Nestle, the owner of Maggi, may need to re-evaluate its pricing strategy to maintain profitability. While there is no official announcement, the MFN status cancellation raises the possibility of a price hike. The exact quantum of the potential price rise is unknown, but it could be as high as 10% compared to the previous 5% tax burden. This could lead to reduced profit margins or increased product prices. Consumers should be prepared for a potential price rise starting January 2025, which could affect household budgets. To stay informed, consumers should keep an eye on news updates from Nestle and reliable news sources.
