Key Highlights:
- ISMA Director General Deepak Ballani said the government and sugar industry are committed to keeping prices reasonable during the festive season.
- Ex-mill sugar prices have already rationalised by 25-30%, with the pan-India average currently at around Rs 4,450 per quintal.
- Retail sugar prices have started moderating and are expected to decline further in the coming weeks.
- Ballani noted a typical time lag between wholesale and retail price movements as benefits pass through the supply chain.
- Domestic sugar supplies remain adequate, with efforts underway to keep prices under control ahead of Dussehra and Diwali.
A Joint Commitment to Affordable Sugar
The government and the sugar industry are working together to ensure that sugar remains available to consumers at reasonable prices during the upcoming festive season, Indian Sugar and Bio-energy Manufacturers Association (ISMA) Director General Deepak Ballani said on Thursday.
A Priority Ahead of Major Festivals
Speaking to IANS, Ballani said maintaining stable sugar supplies and affordable prices remains a priority, especially with major festivals such as Dussehra and Diwali approaching, periods that typically see a significant rise in sugar demand across Indian households.
Ballani's Assurance on Pricing
"First of all, government and industry, we are committed to provide sugar at a very reasonable rate to the consumers, especially during the festival demand, festival season," he said.
Anticipating Seasonal Demand
"We will have Dusshera very soon, Diwali, a lot of festivals, a lot of, you know, so we have to ensure that the sugar is available at a very reasonable price. The retail prices, as I said, has already come down," he added, indicating that some price relief has already begun to materialise even ahead of the peak festive demand period.
Adequate Domestic Supply
According to him, sugar supplies in the domestic market remain adequate and efforts are being made to keep prices under control, offering reassurance that the current pricing focus is not being complicated by any underlying supply shortage.
Retail Prices Already Moderating
Ballani noted that retail sugar prices have already started moderating and are likely to decline further in the coming weeks, suggesting a positive trend that is expected to continue as the festive season approaches.
Explaining the Lag Between Wholesale and Retail Prices
He explained that there is usually a time lag between movements in ex-mill prices and retail prices, as the benefits of lower wholesale prices take time to pass through the supply chain, a dynamic that helps explain why retail prices haven't yet fully reflected the extent of the decline already seen at the mill level.
The Scale of the Ex-Mill Price Decline
He said ex-mill sugar prices have already rationalised by around 25-30 per cent, with the pan-India average ex-mill price currently at about Rs 4,450 per quintal, giving a concrete figure to illustrate just how significant the decline at the wholesale level has already been.
Expecting Retail Prices to Follow
As a result, he expects retail prices to gradually correct as market participants adjust to the lower cost levels, framing the retail price decline as a matter of time rather than uncertainty.
A Final Summary of the Price Outlook
"Basically, what happens is that it takes some time for the prices to reflect all the way down to the retail prices. Now that the XMIL prices have already rationalised by almost 25 to 30 per cent, pan-India average XMIL prices are on 4450. So I believe with time to come, retail prices will also correct," Ballani mentioned, reiterating his overall confidence that the current gap between wholesale and retail sugar prices will continue to narrow in the weeks ahead, offering consumers further relief as the festive season progresses.
Key Highlights:
- ISMA Director General Deepak Ballani said the government and sugar industry are committed to keeping prices reasonable during the festive season.
- Ex-mill sugar prices have already rationalised by 25-30%, with the pan-India average currently at around Rs 4,450 per quintal.
- Retail sugar prices have started moderating and are expected to decline further in the coming weeks.
- Ballani noted a typical time lag between wholesale and retail price movements as benefits pass through the supply chain.
- Domestic sugar supplies remain adequate, with efforts underway to keep prices under control ahead of Dussehra and Diwali.
A Joint Commitment to Affordable Sugar
The government and the sugar industry are working together to ensure that sugar remains available to consumers at reasonable prices during the upcoming festive season, Indian Sugar and Bio-energy Manufacturers Association (ISMA) Director General Deepak Ballani said on Thursday.
A Priority Ahead of Major Festivals
Speaking to IANS, Ballani said maintaining stable sugar supplies and affordable prices remains a priority, especially with major festivals such as Dussehra and Diwali approaching, periods that typically see a significant rise in sugar demand across Indian households.
Ballani's Assurance on Pricing
"First of all, government and industry, we are committed to provide sugar at a very reasonable rate to the consumers, especially during the festival demand, festival season," he said.
Anticipating Seasonal Demand
"We will have Dusshera very soon, Diwali, a lot of festivals, a lot of, you know, so we have to ensure that the sugar is available at a very reasonable price. The retail prices, as I said, has already come down," he added, indicating that some price relief has already begun to materialise even ahead of the peak festive demand period.
Adequate Domestic Supply
According to him, sugar supplies in the domestic market remain adequate and efforts are being made to keep prices under control, offering reassurance that the current pricing focus is not being complicated by any underlying supply shortage.
Retail Prices Already Moderating
Ballani noted that retail sugar prices have already started moderating and are likely to decline further in the coming weeks, suggesting a positive trend that is expected to continue as the festive season approaches.
Explaining the Lag Between Wholesale and Retail Prices
He explained that there is usually a time lag between movements in ex-mill prices and retail prices, as the benefits of lower wholesale prices take time to pass through the supply chain, a dynamic that helps explain why retail prices haven't yet fully reflected the extent of the decline already seen at the mill level.
The Scale of the Ex-Mill Price Decline
He said ex-mill sugar prices have already rationalised by around 25-30 per cent, with the pan-India average ex-mill price currently at about Rs 4,450 per quintal, giving a concrete figure to illustrate just how significant the decline at the wholesale level has already been.
Expecting Retail Prices to Follow
As a result, he expects retail prices to gradually correct as market participants adjust to the lower cost levels, framing the retail price decline as a matter of time rather than uncertainty.
A Final Summary of the Price Outlook
"Basically, what happens is that it takes some time for the prices to reflect all the way down to the retail prices. Now that the XMIL prices have already rationalised by almost 25 to 30 per cent, pan-India average XMIL prices are on 4450. So I believe with time to come, retail prices will also correct," Ballani mentioned, reiterating his overall confidence that the current gap between wholesale and retail sugar prices will continue to narrow in the weeks ahead, offering consumers further relief as the festive season progresses.