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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.

Goodbyes Matter in Branding

Writer: Divyaa Advaani 
Divyaa Advaani 
Feb 1, 2025
3 min read

Updated: Feb 3, 2025

Branding

Saying goodbye is never easy. Whether it's leaving a job, closing a chapter in your career, or parting ways with a business partner, the way you handle goodbyes speaks volumes about your personal brand. A farewell isn’t just an end—it’s an opportunity to leave a lasting impression that shapes how people remember you. In the world of business and professional relationships, goodbyes are as crucial as first impressions.


A personal brand isn’t built only through achievements and milestones; it’s equally defined by transitions. The grace, gratitude, and professionalism with which you handle departures determine how others perceive you long after you’ve moved on. Some people disappear without a word, leaving behind uncertainty or even bitterness. Others make their goodbyes count, reinforcing their credibility and respectability. The difference? Thoughtfulness, communication, and the ability to turn an ending into a new beginning.


When moving on from a job, many people focus on what’s next rather than how they’re leaving. However, the way you exit can open or close doors for future opportunities. Expressing appreciation, maintaining relationships, and leaving on a positive note ensure that you carry goodwill into your next venture. A strong personal brand means ensuring that former colleagues, clients, and industry peers continue to view you with respect and admiration. You never know when paths may cross again, and leaving a positive last impression can lead to future collaborations, referrals, or even job offers.


Similarly, in business, ending a partnership or client relationship shouldn’t be rushed or dismissed. The way you handle these moments can make all the difference. Taking the time to express gratitude, offer support, and leave things on good terms ensures that your reputation remains intact. Burning bridges damages credibility, while fostering goodwill strengthens your personal brand and opens doors to future opportunities. Even when a situation isn’t ideal, professionalism in goodbyes is a powerful way to control the narrative of your career.


Social media plays a significant role in how goodbyes are perceived today. Publicly acknowledging a transition, expressing gratitude, and celebrating the journey rather than focusing solely on the destination is a subtle yet powerful way to reinforce your brand. A well-crafted farewell post on LinkedIn, a message to your network, or a personal note to key connections can ensure that your departure is seen as a step forward rather than an abrupt break.


Emotional intelligence is crucial when saying goodbye. It’s easy to get caught up in frustration, disappointment, or excitement about what’s next, but maintaining composure and professionalism ensures that your brand remains strong. People remember how you made them feel, and a farewell filled with warmth, respect, and authenticity cements your reputation as a leader with integrity.


Think of every goodbye as an investment in your future. The way you leave one chapter determines how smoothly you enter the next. From the tone of your final email to the words you choose in conversations, every action contributes to your brand’s narrative. Being mindful of these moments ensures that people associate your name with positivity, respect, and credibility.


At its core, personal branding is about the story you tell and the legacy you leave behind. Goodbyes are part of that story. They are not just about endings but about setting the stage for future success. By handling them with intention, grace, and professionalism, you solidify your personal brand and ensure that your reputation continues to work in your favour long after you’ve moved on.


So, let’s start your and my journey while we say goodbye to our old lives in order to create a brand identity for ourselves. For starters, let’s get connected online. Follow me on:


The author is a personal branding expert. She has clients from 14+ countries. Views personal.)

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