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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.

From Vision to Action: Building Thane’s First Biomedical Waste Facility

Writer: Dr. Sanjay Joshi
Dr. Sanjay Joshi
Sep 19, 2025
3 min read

With TMC land, IIT-Bombay guidance, and a mix of savings and loans, we built a biomedical waste facility.

In an earlier article, I reviewed hospital technologies for managing biomedical waste, from microwaves to autoclaves, and their challenges in India. Furthermore, I highlighted how the shift focused on innovative developments and inspiring success stories within the country. From the Make in India–driven Srjanam automated biomedical waste treatment plant at AIIMS, New Delhi, to the grassroots, community-led efforts of Thane’s Enviro-Vigil NGO, these initiatives showcase both cutting-edge technology and sustained local action that are shaping the future of sustainable biomedical waste management in India.


While these innovations highlighted what was possible at a national and institutional level, our own journey in Thane began much closer to home. With limited experience but a strong resolve, we decided to take on the challenge of creating a functional biomedical waste facility ourselves.


Given our non-technical backgrounds, we were naturally a little apprehensive at first, but we decided to take the plunge and give it a try. A few pharmaceutical companies already had incinerators, and a couple of scientist friends introduced us to the machines. We also sought guidance from experts at IIT-Bombay to learn and adopt the technology. After several rounds of discussions, deliberations, and careful consideration, we finally decided to accept the challenge and move forward.


The Thane Municipal Corporation (TMC) provided the required land within the premises of Chhatrapati Shivaji Maharaj Hospital in Kalwa. When we visited for the first time, the site was completely covered with construction and demolition debris collected from across the city. Our initial task was to clear the debris and level the land to make it suitable and safe for our operations. We rolled up our sleeves and started working on it.


Another significant hurdle was raising sufficient funds. This was necessary not only to acquire the incinerator, autoclave, and other machines. We would also have to develop the necessary infrastructure, including a storehouse, office space, and a large room to house the incinerator. The total budget at that time was around sixty lakh rupees. We contributed a portion from our personal savings and secured a loan from a local bank to cover the remaining amount.


The next step was to complete all legal formalities and obtain authorisation from the Maharashtra Pollution Control Board (MPCB). Eventually, after clearing the debris, constructing the infrastructure, procuring the equipment, and installing everything in accordance with standard norms and specifications, the facility was fully operational.


In the meantime, we organised a seminar for doctors and hospital staff in collaboration with the Indian Medical Association, Thane chapter, to provide detailed information about the common biomedical waste facility we were setting up and to address any questions or concerns they had. In addition, we developed a comprehensive training programme for nurses and housekeeping staff across the hospitals to help them understand the provisions of the 1998 biomedical waste rules and to clarify the responsibilities of each employee, especially regarding proper waste segregation. We began conducting these training sessions in every hospital using slideshows and posters, even before the incinerator and other equipment were installed.


Beyond these internal initiatives, we also created awareness posters featuring appeals from eminent Marathi film and theatre actors such as D. Girish Oak, Suhastai Joshi, and Sarika Nawathe. The posters showed the actors urging the general public to consider whether they were aware of biomedical waste, followed by the message: “Ask your doctor whether they are segregating their waste.” This initiative aimed to educate ordinary citizens about a completely new category of waste, something no other operational facility in India had attempted at the time.


We officially began collecting and treating waste in March 2003, and the facility was formally inaugurated by Shri Ram Naik, then Petroleum Minister, Government of India. By that time, we had also started enrolling clinics and hospitals to connect with our facility in compliance with the rules, ensuring a structured and law-abiding system for biomedical waste management.


Curious to know what happens next? Stay tuned for next week’s continuation, and have a fantastic weekend!


(The author is an environmentalist. Views Personal.)

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