Govt Committed to Affordable Sugar for Festive Season

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.