Russia-Ukraine War: Consumer Goods Price Can Increase By 10%; Edible Oil Can Be Costlier By 20%
Commodities like grocery items, smartphones, laptops as well as imported cosmetics and watches that are going to rise in cost within the next few weeks. The reason for these price hikes is the excessive commodity costs and the price of the rupee falling because of Russia’s invasion of Ukraine late last month.
According to experts, costs of those consumer goods might go up by 10%. When it comes to edible oils, the hike might be as huge as 20%. The costs of commodities like sunflower and palm oils, metal, aluminium, copper, crude oil and its derivatives have already risen by 10-15% over the last 8 to 10 days. The falling value of the rupee has added to the value stress.
The electronics sector
The electronics sector has been increasing charges by 2-3% each quarter throughout the pandemic. This quarter, the prices might increase even more significantly.
“The industry was already contemplating a price hike from April due to the 7-8% difference between input and selling cost. But the gap has further widened to 10-11% in the last few days,” stated Kamal Nandi, the enterprise head of Godrej Appliances.
Prices of digital goods may go up by 3-5% from the next month, business executives stated.
Prices of everyday food supplies to increase
Ukraine and Russia are essential suppliers of wheat, corn and sunflower oil. India imports around 60% of its sunflower oil requirement and Ukraine accounts for almost three-fourths of those imports.
Can India become a bigger wheat supplier?
Global wheat costs have touched a reported high due to the availability disruption from Ukraine. Though this can be seen as a chance for India to export more wheat, this will lead to costs rising in the country, executives stated. The 10-20% increase in costs of wheat, millet and maize will impact retail costs, said Bimal Kothari, chairman, Indian Pulses & Grains Association.
Consumers can count on the costs of a number of products and especially products made with wheat, oats and corn to rise even further by 10-15% in the next month, stated Aditya Bagri, director of breakfast cereal maker Bagrrys India.