From households to FMCG companies, commodity inflation bites hard

As if the high prices of petrol and diesel were not bad enough, the sharp rise in key agri-commodity prices has begun to disturb consumer goods makers and consumers.

The higher prices of widely used raw materials such as edible oils, pulses, television panels, and chipsets are burdening household budgets and threatening the margins of leading manufacturers.

Edible oils are the largest category in the fast-moving consumer goods (FMCG) sector, with Rs 1.5 trillion yearly sales. Their average price has spiralled upwards by over 45 per cent in the last year.

Palm oil, widely used in personal care products like soaps and in