This dramatic decline, combined with the fall in petroleum product prices over the past month, may bring considerable relief to makers of FMCGs, especially toilet soaps, as palm oil is a key input for manufacture of soaps. FMCG makers such as Hindustan Unilever and Godrej Consumer had already taken price increases on their soap portfolios over the past two quarters to compensate for rising input costs. As it unlikely that prices will be pegged down in the near-term to adjust for lower input costs, companies may be left with higher profit margins to plough back into promotional or new-launch activity.

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