PM Narendra Modi states on 10 May 2026 about the concerns regarding the hiking prices of some products in India such as Gold, Petroleum products, Edible oils and Fertilizers etc. Modi has urged Indian people to not spend on Gold, petroleum products, edible oils and Fertilizers.In this manner the Indian citizen can conserve their declining foreign exchange reserves. Modi has urged Indian to use public transport and electrical vehicles. People should try to work from home and avoid unnecessary foreign trips, travel and purchasing of gold. Indian citizen can use local goods to motivate each other. Whenever possible use metro because it will reduce dependency on the petrol and diesel vehicle thereby cutting the dependency on the foreign currency.
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Statement on buying gold
Indian Prime Minister Shri Narendra Modi has highlighted the weakening of Indian rupees and following out of Dollar. Gold being the best investment is in danger nowadays. Dollar flow out has made Gold more expensive. This scenario create vicious cycle in which Indian Gold consumers are paying more rupees as comparison to the earlier Gold purchase. Day by Day gold purchase is weakening the Indian rupees. India is importer of Gold. The consumption of Gold is more than it production in India. India is spending more than $6 per month in Gold alone. Gold has dual role in Indian. It act as a consumer import and a reserve asset. Indians invest much more on Gold rather than any other stock.
Reserve Bank of India has estimated that the bank has accumulated total of 880 tonnes of gold as of March 2026. Earlier it was 168 tonnes. India total forex reserve comprises 16% of total gold. Total of 10% increment seen from last year. Household purchase have grown different economic effect in the society. Reserve management of gold in bank demand of consumer for gold is growing day by day. Gold importation in large scale put pressure on India account further weakening the rupee over dollar.Gold is becoming expensive due to weakening of rupees over Dollars because of which Indian Consumer has to pay more for Gold.
Petroleum products are also adding stress
India is importer of oil. In India 89% of oil is consumed and imported. Domestic oil production is declining day by day as with the Gold import tax are rising the oil prices by increasing that from $74 barrel to $113 barrel. The increase in Dollar in India in the near term can give limited ability to consume oil.
As latest statement of Indian PM Narendra Modi urged about the import cost and global energy volatility Indian forex reserves are facing pressure. India being an oil importer meets 89% of its oil by external source by paying higher oil prices earlier it was around $74 barrel to over $130 now.
Citizens can assume that The retail prices of petrol and diesel are not changing whereas, the government-owned oil companies are dominating fuel retailing. On May 8 it was observed that due to differences between the retail price and the import price companies are facing heavy losses. The international oil prices rise. Money losses on aviation turbine fuel is seen by OMCs.
There will be no compensation from Government side for OMCs losses. Price hike is been expected. hike would be seen at the petrol pump. India depends on diesel, and fuel for freight transportation and by hikes in price the entire supply chain can be disturb. By the higher prices of groceries, transportation and goods, the consumer pocket will be effected.
The Dilemma of Edible oil
In latest statement of Indian PM Narendra Modi urged about major component of India’s forex bill is edible oil. It reduces the consumption of both economic and public-health measure. Foreign currency can be seen in forex. The reduction in the use of edible oil will be contribution towards patriotism. It may improve the health of the nation and the health of every family member.
India major dependence is on import of Edible oil — We get Palm oil from Indonesia and Malaysia, Sunflower oil from Russia and Ukraine. Edible oil is foremost important and necessary for every Indians. The cost of imported litre is weaken with edible oil price rises and through the supply chain to the consumer’s plate. Mustard oil cannot be scaled up quickly enough to replace imports.
Fertilisers acting as a pressure point
Latest statement of Indian PM Narendra Modi has recommended to reduce the use of chemical fertilisers by highlighting the expenditure on foreign exchange imports.
India can see the price hike in Fertilisers.It has risen from $508 per tonne to $935 per tonne because of West Asia supply routes disruption. We can see the price hike of DAP (di-ammonium phosphate) rised from $680 last year to of $925 per tonne. Ammonia prices is also getting doubled from $435 to $850–900 per tonne.
Import of Indian Urea comes from Gulf Cooperation Council countries around 75%, while 60% is imported domestic urea depend on LNG from Qatar, UAE, and Oman through the Strait of Hormuz — Any disruption to that route could affect not just fertiliser imports, but also domestic urea production. 19.4 million tonnes of urea for the upcoming kharif season is needed by India but the available stocks is 5.5 million tonnes. Domestic production took hit — as urea disruptions is seen in LNG supplies from the Gulf.
If stocks cannot be replenished before kharif planting begins in June, higher farm input costs will be translated into higher food prices.