The Middle East crisis has sent global trade into a tailspin, leaving Indian shoppers to pay the bill. Oil prices have rocketed to more than $97 per barrel, making the transportation of goods significantly more expensive. At the same time, India's dependence on imports means a weaker rupee is pushing up the cost of raw materials for major companies. Economists warn that the country is among the most vulnerable as fuel and fertiliser prices continue to rise.

Price hikes and lighter packets

As costs mount, leading consumer goods companies are passing some of the burden on to customers. Hindustan Unilever, Godrej Consumer Products and Dabur India have already raised prices, while Britannia is expected to follow.

However, higher price tags are not the only change shoppers are seeing. According to the latest Reuters report, companies are keeping the prices of low-cost daily-use products at ₹10 or ₹20 while reducing the quantity inside the packet — a practice known as "reducing grammage".

The impact extends well beyond household essentials. Maruti Suzuki, Mahindra & Mahindra, Tata Motors and Hyundai Motor India have all increased vehicle prices in response to rising costs. Airlines are also feeling the pressure, with IndiGo and Air India cutting flights and raising fares as aviation fuel becomes more expensive.

How brands are surviving

With energy costs rising by between 20% and 100%, companies are increasingly looking for ways to protect their margins. Hindustan Unilever, for instance, is spending less on advertising to conserve cash, the Reuters report noted.

Others are focusing on supply-chain adjustments to limit disruptions and costs. Dabur, a rival to Colgate-Palmolive, is routing shipments through Egypt and Turkey to avoid danger zones. Britannia is shifting some production back to India, while Arvind Fashions is building inventory early to shield itself from further price increases.

Meanwhile, Trent, part of the Tata Group, is changing packaging for its Zudio brand to help keep prices affordable for younger consumers, the Reuters report added.