Srinagar: Amid the raging war between Russia and Ukraine, the consumers in Jammu and Kashmir are facing the heat as the prices of gold, edible oil have soared much to their dismay.
In Kashmir, gold is a much sought-after metal, with the upcoming marriage season in sight rising prices have worried a lot of people in the Union Territory.
“I had made plan to buy gold ornaments for the marriage of my daughter scheduled to be held in June, but the prices of gold have increased over Rs 3000 per 10 grams (22 carats) in just a few days after the war between Russia and Ukraine started,” said Muhammad Sadiq, a Srinagar resident.
The yellow metal is used as a hedge by people in J&K to protect themselves from financial instabilities and it is mostly gifted during marriage ceremonies.
With the hike in prices, buyers are approaching wait and watch mode, which has hit the demand of gold in the Union Territory.
“Demand for gold ornaments has plummeted, people are shying away from buying it because the rates are increasing at a rapid speed. A few days back, gold was sold at Rs 4300 per gram it has increased to Rs 4600 per gram in a jiffy, and in coming days if the war prolongs there are indications’ prices will further surge,” said President, All Kashmir Valley Gold Dealers cum Workers Union, Bashir Ahmad Rather.
Gold prices in India rose sharply, following the global cues. On the Multi Commodity Exchange (MCX), gold price increased 1.55 percent to Rs 50,999 for 10 grams on February 28. Silver prices also jumped significantly on Monday. The precious metal future was 1.41 percent up to Rs 65,820 for a kilogram on February 28.
In the international market, gold prices were set for their best monthly gains in nine months. The fresh sanctions by the United States on Russia for invading Ukraine pushed the price of the yellow metal. Spot gold prices climbed 1.2 percent to $1,909.89 per ounce by 0124 GMT while US gold futures were up by 1.1 percent to $1,908.30. Rather said that it has been observed in the past that global instabilities like wars have direct implications on gold price rise.
Like gold, edible oil prices are also witnessing an increase.
The rates of edible oil have increased by a few notches and in the coming days, it is likely to see a further upward trend much to the dismay of the consumers.
“Unlike gold, edible oil is used by every household, therefore its rising price will pinch consumers the most,” said Aijaz Ahmad, a Srinagar resident. Ukraine and Russia account for nearly 80 percent of the world’s sunflower oil shipments.
If the supply gets disrupted, it increases the risk of a spike in cooking oil prices in the country. Consumer food prices already rose in January at the fastest pace in 14 months, crippling household budgets for many despite relief in taxes and imposed stockpile limits. Prices remain elevated in line with a surge in global edible oil futures.
Global prices of vegetable oils, used for everything from preparing cookies to frying potato chips to making shampoo, have more than doubled in two years over supply constraints, with palm and soybean oils surging to all-time highs this week due to supply jitters.
With the situation getting more complicated between the two countries with every passing day, western nations have warned that Kyiv could fall if the fighting continues.