Falling Rupee Value to Make Imports More Expensive

20-May-2026 08:29 PM

Mumbai. The value of one US dollar has surged past the 96-rupee mark, nearing the 97-rupee level. Currency market experts warn that unless immediate, concrete, and precautionary measures are taken to curb the ongoing depreciation of the rupee's exchange rate, it will soon breach the 100-mark milestone.

The decline in the rupee's exchange rate is expected to have a mixed impact on the Indian economy. On one hand, Indian products will remain price-competitive in the global export market—thereby facilitating increased shipments of various commodities, including rice and spices—while on the other, goods imported from abroad will become more expensive.

This primarily affects pulses and edible oils. Although global market prices for pulses remain low, edible oils are currently witnessing a significant upward trend and price firmness.

Import costs for these commodities have already risen sharply during the first half of the current marketing season and are expected to increase further in the second half. With the rising cost of importing oil, gas, fertilizers, and other commodities, food inflation within the country could escalate further.