Datanomics: Finally, goods producers get pricing power as demand picks up

Manufacturing and mining goods lead the increase, though prices remain below the FY23 base-year level

This report has been updated Goods producers saw a nearly 10 per cent year-on-year (Y-o-Y) increase in prices of their produce during the first half of the current financial year 2026-27 (H1FY27), in contrast to the market apathy seen during the same period over the previous three years. While they witnessed no price rise in April-September period of FY26, the rise was just 1.5 per cent in the same period of FY25, following a 1 per cent fall in H1FY24. Manufacturers and producers of mining goods saw a double-digit price rise in H1FY27. However, the base was too low in the previous year for both of these segments. Electricity producers never saw any price rise  in the first half of any of the four years. In fact, the output producer price index (PPI) for electricity in April-September FY27 was 91.4 points, 8.6 per cent lower than the 2022-23 base year. Manufacturers received higher prices for their products compared to inputs in every month of the first half of FY27 relative to the base year.