30/11/2009 (The Times Of India), Mumbai - The negative impact notwithstanding, the debt crisis in Dubai may have one positive effect — easing cost pressures as commodity prices fall.

After remaining stable for about six months, crude palm oil prices had started to escalate in the last four to five weeks, leading to worries of a build up in cost pressures for FMCG companies. Palm oil goes into the making of toilet soaps, while crude oil price impacts packaging and transportation costs.

Companies like Hindustan Unilever (HUL) and Godrej Consumer have benefited from low commodity costs in terms of delivering better volumes by maintaining prices of finished goods. Cost savings have resulted in better margins for companies enabling them to invest more on promotional spends with the objective of improving market shares.