As tensions between Russia and Ukraine, continue to accelerate. This has become a matter of concern globally. If the war will happen between these two countries. It will have detrimental effects globally. Already the negative impact has started showing up. With the increase in rising crude oil prices. Amid all this India also has to make a strong stand in favor of either party. And with this the country will notice numerous things getting expensive, that includes crude prices and other commodities if the war breaks out. So according to the experts listed below are the commodities that will impact the Indian economy as the prices will increase in the future.
From natural gas to wheat, Here’s what is likely to be impacted:
Prices of crude petroleum and natural gas:
Russia was the third-largest producer of oil in 2020, but if both the countries go to war, crude oil and natural gas prices will accelerate. According to the reports already the price of crude oil is hovering. Another big concern will be oil imports. Since India imports about 80 percent of its energy need through oil imports. This country will have the worst effect. As the Rising energy import prices will leave the country deficit. Also, the rising Crude-oil-related products may see inflation by around 0.9 percent.
Price of edible oil, kerosene, and LPG:
India gets 70 percent of Sunflower oil from Ukraine. So if the tensions rise further the rising sunflower oil prices will also push the prices of other edible oils. Since the crude oil prices are likely to increase, it will also push up the price of LPG cylinders and kerosene as well.
Price of electricity and metal products:
People will see the surge in prices of electricity production, and the result will be higher electricity bills for consumers. Also, the price of metal palladium that is used in mobile phones to automotive exhaust systems, may push up. The reason for this is that Russia is the largest exporter of palladium. And the war will lead to disruption in supply.
Price of wheat:
Another commodity that will get impacted by the war adversely is wheat. In this case, both Russia and Ukraine are the world’s largest wheat producers. So if there will be any disruption. It will disturb the supply of the crop globally. And the result will be a steep surge in food prices.
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