Winning Bizness Desk
Mumbai. Tensions in Iran and across West Asia are now beginning to pinch the pockets of ordinary Indians, with a visible rise in everyday expenses. From kitchen essentials to clothing and household appliances, prices are either already rising or are expected to increase further in the coming months, driven largely by global supply disruptions and costlier crude oil.
Rising crude prices strain multiple sectors
The surge in crude oil prices has triggered a cascading effect across industries. According to EY India, this inflationary trend could persist for up to two years. Edible oil prices have already risen by over 7 percent. India imports nearly 57 percent of its edible oil requirement, including palm oil, soybean oil and sunflower oil, making it highly vulnerable to global price shocks.
FMCG firms resort to shrinkflation amid pressure
With input costs such as packaging, transportation and raw materials climbing steadily, fast-moving consumer goods companies are left with limited choices. They are either increasing prices or reducing pack sizes, a strategy widely known as shrinkflation. Products like soaps, toothpaste and biscuits are already seeing subtle quantity cuts.
- Soap and shampoo packs getting smaller
- Biscuit prices rising or pack sizes reduced
- Companies avoiding direct price hikes
- Supply chain disruptions adding pressure
Supply disruptions hit daily essentials market
Talks between Iran and the United States have failed, worsening the crisis and tightening crude supply. On Monday, crude prices jumped over 8 percent, crossing 104 dollars per barrel. This has created shortages of surfactants and petrochemical derivatives, directly affecting the production of daily-use goods such as shampoos and soaps, and leading to supply disruptions in the market.
Consumer durables see sharp cost escalation
Manufacturing costs of household appliances have risen by 10 to 15 percent, with nearly 70 percent of the burden already passed on to consumers. Prices of washing machines, refrigerators, fans and LED televisions have all increased. With expectations of an intense summer, companies like Voltas and Blue Star are witnessing a rise in stock value, driven by anticipated demand growth.
- Appliance prices up across categories
- AC demand expected to surge in summer
- Companies already passing costs to buyers
- Further hikes likely if crude rises
Textile and paint sectors brace for price hikes
The rise in crude oil prices has also pushed plastic production costs up by nearly 50 percent. In the textile sector, polyester, nylon and colour chemicals have become 20 to 25 percent more expensive. Since synthetic fibres account for 60 percent of India’s textile output, the impact is significant. As per EY estimates, prices of textiles and paints could rise by 2 to 5 percent in the financial year 2026-27 starting April 1.
- Plastic cost jumps sharply with crude
- Synthetic fibres dominate Indian textiles
- Paint industry also facing cost pressure
- Prices may rise gradually through year
