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By:

Rajendra Joshi

3 December 2024 at 9:20:26 am

Sugar industry strains as traders reap profits

Gap between ex-mill prices, retail rates raised questions Kolhapur: The Indian sugar industry is caught in a deepening crisis, with sugar mills struggling to secure remunerative prices for their produce even as traders and middlemen appear to be making substantial profits. While sugar mills are receiving between Rs 4,600 and Rs 4,800 per quintal through recent sale tenders, retail prices have remained as high as Rs 58 per kg. The widening gap between ex-mill prices and retail rates has...

Sugar industry strains as traders reap profits

Gap between ex-mill prices, retail rates raised questions Kolhapur: The Indian sugar industry is caught in a deepening crisis, with sugar mills struggling to secure remunerative prices for their produce even as traders and middlemen appear to be making substantial profits. While sugar mills are receiving between Rs 4,600 and Rs 4,800 per quintal through recent sale tenders, retail prices have remained as high as Rs 58 per kg. The widening gap between ex-mill prices and retail rates has raised serious questions about the role of intermediaries and the effectiveness of the Centre’s efforts to contain sugar prices. The margins available to traders and intermediaries have reportedly crossed 20 per cent, leaving sugar millers perplexed. At a time when both sugarcane growers and mill operators are under financial pressure, the trading chain appears to be benefiting disproportionately. The Centre must examine this growing disparity and take corrective measures to prevent speculative profiteering. Retail sugar prices began rising sharply in August, touching nearly Rs 70 per kg in some markets. The escalation added to inflationary pressures and caused concern among consumers, particularly ahead of the festive season. In response, the Centre introduced a series of measures to improve domestic availability and moderate prices. These included permitting duty-free sugar imports, initially until October 31, a deadline subsequently extended to December 31. The government also directed sugar mills to commence the crushing season from October 15 and tightened monitoring of sugar stocks. In another significant intervention, it modified the ethanol policy, restricting the diversion of sugarcane juice, sugar syrup and B-heavy molasses for ethanol production. Following these measures, sugar mills began witnessing a decline in the prices offered through their sale tenders. Recent transactions have fetched between Rs 4,600 and Rs 4,800 per quintal. Going by the conventional relationship between ex-mill prices and retail rates, sugar should ideally have been available to consumers at less than ₹50 per kg. However, retail prices continue to hover around Rs 58 per kg, pointing to a substantial disconnect between the mill gate and the consumer market. Traditionally, sugar retailing operated on relatively thin margins. Since sugar is an essential commodity, retailers often treated it as a low-margin product to attract customers who would subsequently purchase other household provisions. The margin was sometimes informally equated with the resale value of the empty 50-kg jute bags in which sugar was supplied. This was considered a nominal return for retailers. That traditional pricing mechanism, however, appears to have undergone a significant change. The widening gap between mill-level tender prices and retail rates has created considerable scope for intermediaries to extract higher margins. The critical question is whether the additional amount paid by consumers is reaching the sugar mills or remaining within the trading chain. The issue assumes particular significance in Maharashtra, where the sugarcane pricing dispute has intensified ahead of the new crushing season. Farmers’ organisations have been demanding a minimum price of Rs 5,500 per tonne for sugarcane. Millers, meanwhile, are preparing to agitate for a revision in the Fair and Remunerative Price (FRP) framework and the restoration of a more supportive ethanol policy. The Swabhimani Shetkari Sanghatana, led by Raju Shetti, has taken a firm position that sugar mills should not be allowed to commence operations until farmers receive an acceptable price for their cane. Shetti has also drawn the state government’s attention to the unusually high retail prices of sugar, questioning why consumers continue to pay more even as mills are forced to sell at relatively lower rates. The Centre’s sudden changes to the ethanol policy have further complicated the industry’s financial position. Ethanol production had emerged as an important revenue stream for sugar mills, enabling them to diversify operations, improve cash flows and enhance their capacity to pay farmers. Restrictions on the diversion of sugarcane-based raw materials have weakened this support at a critical juncture. The resulting contradiction is difficult to ignore: farmers are demanding better cane prices, millers are struggling with shrinking realisations and policy uncertainty, while intermediaries appear to be benefiting from the gap between wholesale and retail prices. The government cannot address the sugar crisis merely by regulating mill stocks, imports and ethanol diversion. It must also examine the entire supply chain, identify where the widening margins are accruing and ensure that the benefits of market interventions reach both sugarcane growers and consumers. With nearly Rs 2 lakh crore riding on the sugar economy, allowing intermediaries to thrive while the industry’s primary stakeholders struggle would be a serious policy failure.

Century of Treachery, Century of Triumph: As Red Flags Fade, the Saffron Legacy Endures

Oct 14, 2025
5 min read

Part 3: A century since their founding, the RSS has built a vast national network while the Communists, once courted by Congress, have slid into political irrelevance by crumbling under the weight of their own dogma.

Third RSS sarsanghchalak Balasaheb Deoras addresses a rally.
Third RSS sarsanghchalak Balasaheb Deoras addresses a rally.

The relationship between the Communists and the Congress always swung between “love and hate.” Until 1942, the communists worked from within the Congress. Many communist leaders held office at various levels of the Congress organization.

 

But during the 1942 Quit India Movement, the communists betrayed the movement and helped the British government. In return, they received significant financial and political benefits from the British. This arrangement did not remain hidden for long — when it came to light, it caused a major uproar.

 

Mahatma Gandhi himself publicly accused the communists and demanded answers from them. The Congress even appointed a three-member committee to investigate the matter. That committee — chaired by Pandit Nehru, with Sardar Patel and Maulana Azad as the other members — concluded that the allegations against the communists were true. Once this became clear, the Congress expelled the communists from the party and shut its doors to them.

 

History of betrayal

The communists supported Pakistan’s invasion of 1947–48. Declaring that the freedom achieved on 15 August 1947 was “fake independence” (झूठी आझादी), they launched armed uprisings aimed at overthrowing the national government led by Nehru.

 

In 1949, Pandit Nehru presented a detailed statement in Parliament, placing on record the full account of these anti-national activities. That statement is still available in the parliamentary proceedings. Yet even then, Nehru did not ban the Communist Party.

 

When Communist China attacked India in 1962 and forced a war upon us, the Communist Party of India supported China and engaged in numerous treasonous activities intended to assist the Chinese. This time, however, Pandit Nehru banned the Communist Party and imprisoned its entire central leadership. Then Home Minister Gulzarilal Nanda placed before Parliament a comprehensive statement detailing these acts of treachery — and that record too remains part of the official parliamentary proceedings.

 

From the betrayal of the 1942 struggle up to the present day, the communists have consistently engaged in anti-national activities. The government has had all the evidence of this for decades, and Congress leaders have known about it since the British era.

 

Even so, from Nehru to Manmohan Singh, every single Congress prime minister has chosen to shield the communists. Nehru, misusing his power, rehabilitated many communists — from M. N. Roy and P. C. Joshi to Sajjad Zaheer — and arranged for them to receive handsome monthly stipends. This practice was continued by Indira Gandhi, Rajiv Gandhi, and Manmohan Singh.


Why Congress leaders have shown such deep affection for the communists, despite knowing fully well their anti-national character, remains a difficult question to answer.

 

Communists also played a major role in the Emergency that Indira Gandhi imposed in 1975 and in the repression that followed. It was the communists who advised her to declare the Emergency. The authoritarian constitutional amendments that she tried to push through at the time also bore the stamp of communist counsel. Through Indira Gandhi, they attempted to bring a Russian or Chinese-style dictatorship to India, though they ultimately did not succeed.

 

National rejuvenation

In the early years after India attained independence, the RSS devoted itself to the task of protecting and assisting Hindu refugees arriving from Pakistan. Following Gandhi’s assassination, the RSS had to wage a satyagraha against the unjust and illegal ban imposed by the Nehru government. Once that struggle ended, the RSS once again focused its energies on its core mission of organizing Hindu society and working for national rejuvenation.

 

Although the RSS as an organization kept away from politics, it recognized that its ideology needed to be represented on the political stage. Acting on this insight, it took the initiative in founding the Bharatiya Jana Sangh. In the first general elections held in 1952, the Jana Sangh contested and secured 3.76 percent of the vote and three seats in the Lok Sabha.

 

Over the past eight decades, through many ups and downs and organizational transformations, the erstwhile Jana Sangh has become today’s Bharatiya Janata Party, which now governs at the Centre and in several states with full majorities. Today, the BJP is recorded as the largest political party in the world in terms of membership.

Ajoy Kumar Ghosh and Ho Chi Minh smoke as Jawaharlal Nehru looks on. Ghosh was a prominent Communist leader and general secretary of the Communist Party of India from 1954 to 1962.
Ajoy Kumar Ghosh and Ho Chi Minh smoke as Jawaharlal Nehru looks on. Ghosh was a prominent Communist leader and general secretary of the Communist Party of India from 1954 to 1962.

The inspiration of the RSS has also led to the creation of numerous other organizations and institutions across many fields. Today, the RSS’s work has reached nearly every taluka in India, and its presence has spread to many countries around the world. If one takes into account the RSS and the numerous organizations in its wider ideological family, the Sangh is widely acknowledged to be the largest and most influential voluntary organization in the world today.

 

A remarkable fact about the RSS is that in this entire span of a hundred years, it has never experienced a single split.

 

In the first general elections of 1952, the communists won 26 seats — the second-highest tally after the Congress — and secured 23.37 percent of the votes. Like the RSS, they too have experienced many ups and downs over the past eight decades. Between 2004 and 2009, they participated in the central government in alliance with the Congress. But since 2014, their decline has accelerated.


Today, their presence in the Lok Sabha is negligible. The states of West Bengal and Tripura, which they had held for decades, have slipped out of their hands, leaving them with a foothold only in Kerala. The various organizations they had built up in other sectors have also fallen into disrepair. As an organization, the Communist Party now has very little real existence.

 

A key characteristic of their history is that the Communist Party has repeatedly fractured over time. Numerous splinter groups — calling themselves Marxists, Leninists, Stalinists, Maoists — continue to operate in various parts of the country, but they no longer enjoy popular support.


However, thanks to Congress patronage, they have deeply entrenched themselves in the education system, the administration, the judiciary, and the media. Through these avenues, they continue their efforts to create instability in the country.

 

The communists have neither abandoned their declared program of breaking India into pieces nor apologized to the nation for it. Even today, they continue to engage in violent conspiracies in pursuit of that goal.

 

A hundred years ago, in the same year — 1925 — two mutually opposed ideologies took root in India. This is a very broad comparative overview of their journeys over that century. In truth, the scope and importance of this subject are such that countless volumes ought to be written about it. I am confident that researchers and scholars will certainly take up this task in the future.

 

(The writer is Vice-President, BJP Maharashtra, former Chief State Spokeperson of the BJP, Maharashtra and Director, Vilasrao Salunke Adhysan (Rambhau Mhalgi Prabodhini. He is also the author of several books including a noted work on Ayodhya. Views personal.)

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