Soap, Cooking Oil Price: Big news for everyone. ongoing war between Iran and America was posing a threat of inflation risk and now it is becoming visible, because after the increase in the prices of petrol and diesel, soap, soda and cooking oil are also going to become expensive. In fact, FMCG companies are preparing to increase the prices once again from the first quarter of the financial year 2027.
According to a report by Nuvama Institutional Equities, the sharp increase in crude oil prices and weakening of the rupee has increased the pressure on input costs, due to which it is now difficult for the prices in this sector to remain stable.
The brokerage firm’s report estimates that if current raw material inflation persists, prices will rise by at least 3 to 4 percent in the first quarter of fiscal 2027. While the impact on the fourth quarter of fiscal 2026 is expected to be limited due to current stock levels, the industry is preparing for a turnaround as these stocks are depleting.
What else did the report say?
“In our view, companies typically hold 30-45 days’ worth of raw materials and finished goods, hence, price increases are likely in the first quarter of FY2027,” the Nuvma report said. Companies manufacturing paints, edible oils, soaps and detergents are under the most pressure, and these may see even more price increases.
Packaging costs for companies have risen
Packaging costs, which account for 15 to 20 percent of most FMCG companies’ total expenses, have risen alongside rising crude oil prices, which currently trade around US$100 per barrel. This has had a direct impact on the cost of petrochemical products, including polypropylene and polyethylene, which are used in rigid packaging.
“High crude oil prices and a depreciating rupee have exerted pressure on input costs, mainly due to an increase in packaging costs, which account for about 20% of total costs,” the report said.