Winning Bizness Desk

Mumbai.

Growing tensions in West Asia are now set to hit household budgets in India, as companies prepare to increase prices of daily-use goods. A sharp rise in crude oil and raw material costs has pushed up production expenses, forcing manufacturers to consider price revisions. Items such as bottled water, salt, edible oil, air conditioners, refrigerators and even non-surgical medical products may soon become more expensive. Industry players say the impact is already visible across supply chains, and April could see a broad-based increase in prices across categories.

Plastic industry faces severe raw material shock

The plastic sector, which forms the backbone of packaging and manufacturing, has been hit the hardest. Over the past 30 days, prices of key raw materials have surged by 50 to 70 percent. The widely used LDPE plastic granules have jumped from Rs 110 per kg to nearly Rs 180 per kg. Other polymers and raw materials have also seen steep increases of Rs 30,000 to Rs 70,000 per tonne. This could push plastic product prices up by 50 to 60 percent in April, with plastic tanks and containers expected to cost 30 to 40 percent more.

• LDPE prices rise sharply within a month
• Polymer costs surge across categories
• Plastic goods likely to become significantly costlier
• Industry warns of deep structural stress

LPG shortage forces shutdown of small units

The crisis has deepened due to a shortage of commercial LPG, which is essential for many small manufacturing units. Nearly 50,000 plastic factories have been affected, with around 20,000 units estimated to have shut operations or reduced output. In cities like Rajkot, more than 40 plants have already closed, while units in Madhya Pradesh, Raipur and Hyderabad are also struggling. Manufacturers say production is not possible without gas, and even at higher prices, LPG is not easily available.

• Around 20,000 factories shut or slowed
• Gas shortage disrupts continuous production
• Small units face severe survival challenges
• Order cancellations rising across sectors

Shift in urban consumption patterns emerging

The shortage of LPG and return of migrant domestic workers have begun changing urban consumption habits. Many households are moving towards ready-to-eat food options that require less cooking effort. Quick commerce platforms have reported a sharp rise in demand for such products. Industry executives say ready-to-eat sales are already running about 10 percent higher than normal levels, while induction cooktops have seen a tenfold jump in sales over the past five days.

Consumers, as well as food businesses, are now favouring solutions that reduce cooking time by up to 80 percent and save nearly 60 percent of gas usage. Online platforms have also reported increased demand for instant noodles, juices, nuts and protein-based snacks, prompting the launch of dedicated ready-to-eat sections.

Cement sector struggles with rising input costs

The impact of the crisis is also visible in the cement industry, where input costs such as petcoke, coal and packaging materials have risen sharply. Analysts estimate that production costs could increase by Rs 150 to Rs 200 per tonne. Polypropylene, used in cement bags, is directly linked to crude oil prices, adding further pressure. Although companies attempted to raise cement prices by Rs 15 to Rs 20 per bag in the fourth quarter, the hike had to be rolled back due to weak market demand. Only a marginal increase of Rs 10 to Rs 15 per bag has held in northern regions.

Experts see gradual demand shifts and risks ahead

Industry experts say there is no immediate sign of panic buying, but the situation could change if the West Asia conflict continues. By the fourth week of the crisis, demand patterns may shift more visibly as restaurant operations face disruptions and migrant workers return to their hometowns. Companies expect prices across categories to rise by 7 to 10 percent based on raw material costs, but the key concern remains whether consumers will absorb these increases.

• No panic buying yet, but trends under watch
• Demand may shift with prolonged disruptions
• Price hikes depend on consumer response
• Industry cautious about sustaining production levels