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<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\nMUMBAI: A prolonged war in West Asia is making it difficult for companies to manage their costs\u2014the 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. \u201cFor 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,\u201d 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. Continued uncertainty will push companies to postpone capital deployment weighing on fresh job additions and broader demand, said B. Thiagarajan, MD at Blue Star. \u201cThis whole FY will be strained. When costs go up, both margins and consumer demand get impacted,\u201d Thiagarajan said. In their recent quarterly earnings, companies have said that commodity inflation continues to be a major headwind, projecting more price hikes going ahead. \u201cA protracted conflict in West Asia, alongside emerging El Nino conditions that may weaken monsoons and intensify heatwaves, could weigh on growth, inflation and current account,\u201d ITC said, highlighting trade and supply chain disruptions in Q1.Prolonged geopolitical conflicts may increase uncertainty for businesses in the short-term, said Ashok Nair, MD, RPG Life Sciences, adding that the firm\u2019s continued expansion into new and emerging markets offers it some operational buffers. For consumers, supply chain volatility will translate into more price hikes across the board, potentially making festive shopping pricier. \u201c…..if need be we will also make further pricing interventions because we\u2019re also coming to terms with the exact inflationary impact on the margins,\u201d said Ashish Goenka, group CFO at Tata Consumer Products in recent earnings call.Mohit Malhotra, global CEO at Dabur India said inflationary pressures are expected going forward.<\/div>\n