Price Rise Sugar

Retail prices of wheat, rice and sugar are showing a declining trend after curbs on exports were placed, Food Secretary Sudhanshu Pandey said

Global food prices rose in May at their fastest monthly rate in more than a decade even as world cereal production is on course to reach a new record high, the Food and Agriculture Organisation (FAO) of the United Nations reported on Thursday.

The Food and Agriculture Organization's food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 100.9 points last month, the highest since January, versus a slightly revised 97.8 in September.

The research team estimated that adding 10 percent to the price of chocolate, confectionery, cakes, and biscuits may reduce purchases by around 7 percent.

The full year 2016 logged a 1.5 percent annual drop in the index

In order to check inflation, the government has amended the metrology rules which would allow it to fix retail prices of essential commodities like pulses and sugar in extra-ordinary situations. Under the present system, retail prices are fixed by market forces, leaving very little room for the government to check undue spike in prices.

A sharp rise in prices of vegetables, pulses and sugar pushed up wholesale inflation to 1.62 per cent in June versus 0.79 per cent increase in the previous month. The faster-than-expected rise in wholesale food prices will also impact retail inflation, which is used by the Reserve Bank to set interest rates.

Prices of many foodstuffs such as pulses, sugar, vegetables and poultry products are set to surge in India in the next three months on thin supplies, which could fuel inflation and give the central bank little room to cut rates, said analysts.

Any further downward revisions in Indian sugar output due to drought could drive global sugar prices higher, extending a rally that has been fuelled by rising global deficit forecasts, traders said on Monday.

Higher Indian exports would put pressure on global prices, but harden local prices and help mills in paying farmers state-fixed support price for sugar cane.

India's villages face a sharp spike in food prices in 2016, as a second year of drought drives up the cost of ingredients such as sugar and milk.

India's sugar exports are seen rising after March when global prices are likely to rise following bad weather conditions in some parts of the world, the founder of Platts' Kingsman, a consultancy, said on Monday.

A raised sugar import duty in India, festival demand and an expected delay in cane crushing in a key producing state have helped push domestic prices to a $70 a tonne premium to international prices, making it more lucrative to sell domestically. A year ago the premium was just $20 a tonne.

Congress today took potshots at Prime Minister Narendra Modi over the 30-day report card of his government, wondering whether the "serious hard work" was aimed at the rail fare hike, rising sugar prices and a policy that would see regular hike in prices of petroleum products.

In the wholesale market, the prices of the sweetener edged higher by up to Re 1 to Rs 34 per kg.

Retail prices of wheat, rice and sugar are showing a declining trend after curbs on exports were placed, Food Secretary Sudhanshu Pandey said

Global food prices rose in May at their fastest monthly rate in more than a decade even as world cereal production is on course to reach a new record high, the Food and Agriculture Organisation (FAO) of the United Nations reported on Thursday.

The Food and Agriculture Organization's food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 100.9 points last month, the highest since January, versus a slightly revised 97.8 in September.

The research team estimated that adding 10 percent to the price of chocolate, confectionery, cakes, and biscuits may reduce purchases by around 7 percent.

The full year 2016 logged a 1.5 percent annual drop in the index

In order to check inflation, the government has amended the metrology rules which would allow it to fix retail prices of essential commodities like pulses and sugar in extra-ordinary situations. Under the present system, retail prices are fixed by market forces, leaving very little room for the government to check undue spike in prices.

A sharp rise in prices of vegetables, pulses and sugar pushed up wholesale inflation to 1.62 per cent in June versus 0.79 per cent increase in the previous month. The faster-than-expected rise in wholesale food prices will also impact retail inflation, which is used by the Reserve Bank to set interest rates.

Prices of many foodstuffs such as pulses, sugar, vegetables and poultry products are set to surge in India in the next three months on thin supplies, which could fuel inflation and give the central bank little room to cut rates, said analysts.

Any further downward revisions in Indian sugar output due to drought could drive global sugar prices higher, extending a rally that has been fuelled by rising global deficit forecasts, traders said on Monday.

Higher Indian exports would put pressure on global prices, but harden local prices and help mills in paying farmers state-fixed support price for sugar cane.

India's villages face a sharp spike in food prices in 2016, as a second year of drought drives up the cost of ingredients such as sugar and milk.

India's sugar exports are seen rising after March when global prices are likely to rise following bad weather conditions in some parts of the world, the founder of Platts' Kingsman, a consultancy, said on Monday.

A raised sugar import duty in India, festival demand and an expected delay in cane crushing in a key producing state have helped push domestic prices to a $70 a tonne premium to international prices, making it more lucrative to sell domestically. A year ago the premium was just $20 a tonne.

Congress today took potshots at Prime Minister Narendra Modi over the 30-day report card of his government, wondering whether the "serious hard work" was aimed at the rail fare hike, rising sugar prices and a policy that would see regular hike in prices of petroleum products.

In the wholesale market, the prices of the sweetener edged higher by up to Re 1 to Rs 34 per kg.