Raw Material Costs

The government plans to raise NSIC’s raw material procurement assistance to 900,000 tonnes a year from 300,000 tonnes as supply disruptions and price volatility squeeze small businesses.

Input costs now account for a bigger share of expenditure and sales than during the FY23 commodity spike, squeezing margins to three-year lows even as stronger balance sheets and lower energy dependence cushion the blow.

A polypropylene shortage triggered by West Asia supply shifts is squeezing cement bag makers, raising packaging costs and threatening dispatches just as fuel inflation hits margins.

The harsh climate, hazardous shipping, limited infrastructure and tiny local workforce have for years left a promised gold rush frozen in its tracks.