Sodium Acid Pyrophosphate (SAPP) prices in India rose by 2.8% in July 2025 compared to June levels. This notable increase occurred due to improving demand from food-grade applications and better performance in the FMCG sector during the month.
The food processing industry witnessed robust growth in July on all fronts. Kirana store orders expanded by 8.6% YoY, faster than the 4.6% growth rate observed in June. With rural demand growing significantly at 10.3% YoY over the same period. These encouraging figures indicate stronger SAPP restocking activities across staples and packaged food categories throughout the month.
Bakery manufacturers increased their SAPP usage during July as production schedules expanded considerably. The compound serves as an important leavening and processing aid in bakery applications across the industry. Processed food companies also raised their operational levels significantly, creating consistent and sustained demand for SAPP throughout the month. This steady consumption pattern helped maintain balanced inventory levels across supply chains in the domestic market.
The pharmaceutical sector contributed meaningfully to overall SAPP demand stability during July. Investment activity reached USD 294 million across 18 deals in July, showing a significant recovery from previous months. New drug approvals and clinical trial permissions increased notably during mid-July period. Export performance remained positive following June's impressive 6% year-on-year growth trajectory. SAPP acts as a buffering and stabilizing excipient for pharmaceutical products, linking its demand to manufacturing and regulatory efforts.
Supply conditions continued to remain steady, although India still relies on imports to fulfil domestic demand. The supply of SAPP is primarily imported from China, Southeast Asia, and the US through traditional trade routes. Feedstock costs for wet-process phosphoric acid and sodium compounds stayed moderate in July. This favourable situation allowed manufacturers and traders to maintain steady pricing approaches without major disruptions.
Freight costs decreased from mid-June highs, improving shipping economics for Asia-to-India routes significantly. However, currency factors limited the extent of cost benefits. The Indian rupee remained around Rs.86 per US dollar during July. This exchange rate level prevented significant import cost reductions and supported the upward price movement.
Market participants expect SAPP procurement activities to slow as buyers use inventory accumulated in July. Pre-festival production schedules in bakery and packaged food manufacturing should maintain SAPP consumption levels going forward. Import arrivals from established overseas suppliers will likely keep supply conditions comfortable.
ChemAnalyst's forecasts suggest SAPP prices may decline by 1% this month, followed by a potential 1.6% increase in September. This forecast indicates the equilibrium between consumption of inventories and supportive demand levels in food processing during the pre-festive period. The demand trajectory looks promising considering the stable fundamentals of major end-user sectors.
