West Asia war uncertainty keeps businesses on edge

MUMBAI: A prolonged war in West Asia is making it difficult for companies to manage their costs—the persistent volatility be it in terms of commodity inflation, freight charges or exchange rates means nothing can be planned with certainty. While rising costs will squeeze margins, some of the businesses are also wary that discretionary demand may take a hit amid multiple rounds of price increases. “For companies like ours, the biggest uncertainties stem from volatility in commodity prices/raw material costs, freight costs and shipping timelines, all of which can impact supply chain planning. It forces us to double down on execution, enforce cost-discipline and diversify sourcing,” said Shrikant Kanhere, MD & CEO at AWL Agri Business.Pricing products is becoming a challenge because there is no stability in rates, said Mayank Shah, chief marketing officer at Parle Products.