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Global Supply Chain Crisis: Due to rising tensions in West Asia and the Iran-Israel conflict, its impact on the global supply chain is now clearly visible. This can also have a direct impact on the Indian market. Industry experts believe that there may be an increase in the prices of many essential commodities from April.

According to reports, prices of many items like cars, two-wheelers, televisions, refrigerators and air conditioners may increase by 5-6%. Companies say that the rising cost of raw materials, increase in international shipping charges and fall in the value of rupee against the dollar have significantly increased the cost of production. As a result, the increase in prices is now considered almost certain.

Auto and electronics companies may increase prices

Companies in the automotive sector are preparing to increase the prices of their vehicles by 2-3%. At the same time, manufacturers of consumer electronics and home appliances report that their products contain a large proportion of plastic parts; As a result, their goods may see a 5-6% increase in prices.

Luxury car manufacturers have already taken steps in this direction. Mercedes-Benz and Audi have announced an increase of about 2% in the prices of their cars, which will be effective from April 1. It is expected that other automotive companies may also announce their new price structures soon.

Shoes, clothes and paint can also become expensive

The impact of increase in prices will not be limited to the automotive and electronics sectors only. Industry experts say that the prices of shoes, slippers, clothes made of synthetic fibers and decorative paints used in homes may also increase by 9-10%. Heads of many companies say that while the recent GST cut had brought a slight boost in sales, now rising costs are forcing companies to take the decision to increase prices.

Companies say: compulsion to increase prices

According to Kamal Nandi, head of appliance business at home appliance manufacturing company Godrej Enterprises, the company may increase the prices of its products by 5-6% from April. He says that the prices of raw materials have increased rapidly in the last one month. In particular, suppliers of plastic parts are continuously increasing their prices, and are also avoiding long-term contracts.

Pressure on supply chain is also increasing

The Automotive Component Manufacturers Association of India (ACMA) has told the government that the import of many essential raw materials is being delayed. These include chemicals, synthetic rubber, aluminum scrap and petrochemical products. According to Vini Mehta, director general of the association, tensions in the Middle East are increasing uncertainty in the supply chain.

Huge increase in the cost of raw materials and shipping

According to company officials, prices of crude oil products such as plastics, resins and polymers have increased by about 25% in the last one month. Additionally, the cost of international shipping has also increased by 7-10%. Also, the nearly 2% decline in the value of the rupee against the US dollar is putting even more pressure on companies.

Many companies have already made announcements

Berger Paints India has announced an average 5% increase in prices of select products from March 25. The company’s CEO, Abhijit Roy, said that raw material prices are fluctuating rapidly, and if the current situation continues, further changes in prices may be necessary. Meanwhile, according to Harkirat Singh, managing director of Woodland, the company may increase the prices of shoes by 8-12% from April due to rising raw material costs.