News Capsule: Food inflation likely to remain range-bound in 2026
29-Dec-2025 09:48 AM
News Capsule: Food inflation likely to remain range-bound in 2026
★ After peaking at 10.87% in October 2024, food inflation has steadily declined and was recorded at -3.91% in November 2025. The moderation has been largely driven by softer prices of vegetables, cereals, pulses, meat, eggs and spices.
★ Due to above-normal monsoon rainfall over the past two years, sugarcane availability remains comfortable in the current 2025–26 sugar season (October–September). The Indian Sugar and Bio-energy Manufacturers Association (ISMA) has projected sugar production at around 34.3 million tonnes in 2025–26, an increase of about 16% compared with 2024–25.
★ Looking ahead to the 2026–27 season, sugarcane output is also expected to register healthy growth. Improved planting trends, better water availability and sustained productivity gains across major cane-growing states are expected to support a stronger crop, which should comfortably meet both sugar and ethanol requirements, according to ISMA Director General Deepak Ballani.