As we begin the month of March, we may expect a slew of financial changes. The combination of commodity supply difficulties and the Russia-Ukraine conflict has had a direct impact on the price of sunflower oil, while prices of wheat, coriander, jeera, maize, and soya meal have been influenced indirectly by the drying up of supplies of these commodities from Russia and Ukraine.
So, from a hike in milk costs to an increase in the price of commercial LPG cylinders. Here are the top four changes that will have an impact on your finances starting this month.
The cost of cooking oil is expected to rise
Commodity prices have risen to record highs throughout the world as a result of the ongoing Ukraine-Russia conflict, amid fears of supply disruption. The Russian invasion of Ukraine will have an influence not just on global crude prices, but also on cooking oil costs — the latter of which is likely to be more immediate.
However, finance minister Nirmala Sitharaman stated on Monday that India is closely monitoring the impact of the current conflict between Russia and Ukraine on exports and imports. "We are quite concerned about the problem in its granular form since it would have an impact for basics such as food oils from Ukraine, sunflower oil, and components of fertilizers," Sitharaman added.
Increase in Amul Milk Price
Amul, a dairy product producer, has announced a Rs 2 per liter price rise for milk. Prices will be implemented beginning tomorrow. According to the Gujarat Cooperative Milk Marketing Federation (GCMMF), the Rs 2 per liter increase equates to a 4% increase in MRPs, which is substantially lower than the average food inflation. The price of milk has been raised for the second time this fiscal year. GCMMF raised the price by Rs 2 per liter in June 2021.
LPG Commercial Cylinder price to get a hike
Prices for 19 kg commercial LPG cylinders in Delhi have been raised by Rs 105 as of today. The 19 kg commercial cylinder would now cost Rs 2,012 in Delhi as a result of this. It is also worth noting that the price of the 5kg cylinder has been reduced by Rs 27. In the national capital, the 5Kg cylinder will now cost Rs 569. Since October of last year, the price of domestic LPG cylinders has remained constant. During this time, however, crude oil prices have surpassed $102 per barrel. Prices for home LPG cylinders may be changed after the election, maybe around March 10. Prices of non-subsidized gas cylinders are expected to rise by more than Rs 100 t 200 per cylinder.
Inflation in other Commodities
In India, commodity prices have reached multi-year highs, resulting in unprecedented inflation. Most FMCG firms, from HUL to Britannia, ITC, and Nestle, have highlighted inflation as a problem in their October-December (Q3) reports. Prices for edible oils, wheat, palm oil, barley, and other grains are projected to climb further as a result of the ongoing war. This is due to the fact that Ukraine and Russia account for a sizeable chunk of the world's commodity trade.
