War Impact- From Gold to Milk, CNG, Prices Continue to Climb

War Impact on India’s Economy: As time progresses, enormous pressure is mounting on the economies of India and many other countries. The war situation in West Asia has shaken the entire world. The war between Iran and Israel shows no signs of stopping. Meanwhile, in India, the prices of all goods are rising rapidly. From gold jewelry to LPG, oil, milk, and CNG, prices are increasing. No one knows when the situation will improve.

Right after Prime Minister Narendra Modi’s request, import duties on gold and silver were raised, leading to a dramatic increase in jewelry prices. Within just 48 hours of this announcement, the prices of CNG and milk hit the public hard. Mahanagar Gas Limited in Mumbai raised CNG prices, while companies such as Amul and Mother Dairy also hiked their milk prices. On the other hand, petrol, diesel, and domestic gas prices have remained unchanged, so let’s take a closer look at the factors that will directly affect the average person’s finances in the near future.

If you’ve been keeping an eye on the market lately, you may have noticed that inflation is no longer just a topic in the news; it’s impacting your wallet directly. From your morning tea to your travel expenses, from weddings to investments, costs are climbing everywhere. The rise in prices of gold, silver, milk, CNG, and various other essential goods has heightened the worries of everyday people.

Import duty on gold and silver has been raised to 15%

The most talked-about issue is the pricing of gold and silver. The government has recently increased the import duty on these metals to 15%. Following this change, there was a significant spike in gold prices in the market. Now, a 10% basic customs duty and a 5% AIDC (Agriculture Infrastructure and Development Cess) will be applied to gold, which will have a direct impact on consumers. Previously, a tax of about Rs 13,500 was required for 10 grams of gold, but this will now rise to approximately Rs 27,000, indicating that due to taxes alone, the price of gold could increase by ₹13,500 per 10 grams.

Interestingly, while gold prices have surged, this has also provided some relief for those who have taken out gold loans. Shares of gold loan companies experienced a significant rise of up to 11% on Wednesday. This decision is turning out to be beneficial for major players like Manappuram Finance, Muthoot Finance, and IIFL Finance.

These things become expensive

1. Gold- Gold import duty increased from 6% to 15%
2. Silver- Silver import duty is also 15%
3. Milk- Mother Dairy and Amul hike prices by Rs 2 per litre
4. CNG- MGL hikes prices by Rs 2/kg in Mumbai
5. Jewellery- The price of jewellery increased due to increase in gold duty.
6. Gold Loan
7. Gas/Fuel Transport Cost
8. Imported luxury goods Strong dollar and weak rupee

Sugar Price

The central government has banned the export of sugar from the country. This ban has come into effect immediately. The Union Commerce Ministry issued a notification on Wednesday, May 13, placing sugar exports in the restricted list. The notification states that sugar exports have been moved from the restricted category to the prohibited category. This provision has come into effect immediately and will remain in effect until September 30, 2026, or until a new order is issued. This ban will not apply to exports to the US and the European Union under special quotas. Sugar production is estimated to be less than 28 million tonnes during the current sugar season, from October 1, 2025, to September 30, 2026. This could lead to an increase in sugar prices.