Sugar prices may decline further ahead of Dussehra, Diwali: ISMA DG says
ISMA Director General Deepak Ballani stated that India’s government and sugar industry are collaborating to ensure adequate supplies and stable prices during the festive season. Ex-mill prices have fallen 25 to 30 percent, averaging Rs 4,450 per quintal, with retail price corrections expected soon.
Indian Sugar and Bio-Energy Manufacturers Association (ISMA) Director General Deepak Ballani on Thursday said that the government and the sugar industry are working together to ensure adequate sugar supplies and keep prices reasonable during the upcoming festive season.
Speaking to IANS, Ballani said keeping sugar prices stable is particularly important as demand is expected to rise during festivals such as Dussehra and Diwali.
“First of all, the 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.
“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, have already come down,” he added.
Sugar Supplies Remain Adequate
Ballani said sugar supplies in the domestic market are currently sufficient and the government and industry are taking steps to prevent any sharp rise in prices during the festive season.
He said retail sugar prices have already started coming down and could decline further in the coming weeks.
According to Ballani, there is usually a delay before changes in ex-mill prices are reflected in retail markets. Lower prices at the mill level take time to pass through different stages of the supply chain before reaching consumers.
Ex-Mill Prices Fall 25-30 Per Cent
Ballani said ex-mill sugar prices have already declined by around 25-30 per cent. The pan-India average ex-mill price is currently around Rs 4,450 per quintal.
He said the fall in ex-mill prices should gradually lead to a correction in retail prices as the lower costs move through the supply chain.
“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 at 4450. So I believe with time to come, retail prices will also correct,” Ballani said.
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Source : The Statesman
