Middle East conflict squeezes Indian FMCG: palm oil +11%, HDPE +56%, prices hiked 3-7%
Geopolitical shock is rippling into Indian grocery aisles. Palm oil up 11%, Brent +32% and HDPE packaging resin +56% have pushed FMCG raw material costs 8-10% higher. Companies have already taken 3-7% price hikes, with further increases and grammage cuts expected across F&B and HPC through H1 FY27. Gross margins compressed 50bps YoY.
Middle East conflict is driving raw material inflation across Indian FMCG. Palm oil up 11%, HDPE packaging up 56%, Brent up 32%. Companies have hiked prices 3-7% with more hikes and grammage cuts expected in F&B and HPC categories through H1 FY27.