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Agri commodity prices poised to rise in 2026
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Friday, 19 December, 2025, 08 : 00 AM [IST]
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Abhitash Singh, Mumbai
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Agri commodity prices are expected to move northward in 2026, driven by a mix of climatic uncertainties, rising input costs, shifting global demand patterns, and tightening supplies across key crops. Industry experts believe that after a relatively volatile 2024–25, the coming year could see sustained price firmness in cereals, oilseeds, pulses, sugar and select horticultural produce.
One of the key factors likely to influence prices is climate variability. Erratic monsoons in South Asia, prolonged dry spells in parts of Europe, and weather disruptions in major producing regions such as South America are expected to impact crop yields. Any shortfall in production could immediately reflect in higher prices, especially for staples like wheat, rice and maize.
Rising input costs are another major concern for farmers and agri value-chain players. Increased prices of fertilisers, energy, fuel and logistics continue to squeeze margins, prompting growers to seek better price realisation for their produce. This cost pressure is likely to be passed on through the supply chain, impacting food processors and ultimately consumers.
On the demand side, global consumption is projected to remain strong. Population growth, urbanisation and increasing demand for processed and packaged foods are driving higher consumption of agri commodities. Additionally, the growing use of crops such as maize and oilseeds for biofuels and industrial applications is expected to tighten supplies further.
Trade dynamics may also play a role in shaping prices. Export restrictions, stockpiling by governments, and geopolitical uncertainties could disrupt global supply chains, adding volatility and upward pressure on prices. For India, strong domestic demand coupled with policy interventions to safeguard food security may influence both availability and pricing trends.
For the food and beverage industry, rising agri commodity prices in 2026 could translate into higher raw material costs, prompting companies to revisit sourcing strategies, improve supply-chain efficiencies and explore alternative ingredients. As the sector prepares for the year ahead, price risk management and long-term procurement planning are likely to become critical focus areas.
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