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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.

India, A Spacefaring Nation in the Making

Writer: Dr. Kishore Paknikar
Dr. Kishore Paknikar
Jun 27, 2025
4 min read

India’s story is not to mimic the Cold War space race or impress the skies, but to integrate space into everyday life.

The immortal line ‘saare jahaan se achcha’ took on celestial significance when Rakesh Sharma, orbiting Earth aboard Soyuz T-11 in 1984, recited it in response to Prime Minister Indira Gandhi’s now-legendary query: “How does India look from space?” That moment not only etched itself into the national imagination but also marked the beginning of India’s manned space odyssey. Four decades later, as Shubhanshu Shukla becomes the second Indian to travel into space, this time to the International Space Station (ISS), the emotional resonance is unmistakable. But more than that, it signals a renewed momentum and reflects a nation still in the process of becoming truly spacefaring.


Shukla’s journey comes at a transformative juncture in India’s space programme. The Indian Space Research Organisation (ISRO) is no longer confined to launch services or modest interplanetary forays. It is steadily expanding into new frontiers, preparing for human spaceflight through Gaganyaan, advancing lunar and solar missions, exploring quantum communication, and developing reusable launch systems. These efforts represent the qualities not only of an accomplished space agency but also of a nation gradually moving toward full-fledged space capability.


This new chapter stirred in me memories of reading A Spacefaring People, Perspectives on Early Spaceflight, edited by Alex Roland and published by NASA in 1985. I recall reading the book with great excitement when it first appeared, captivated by how the early decades of American and Soviet space efforts were not just feats of engineering but profound expressions of scientific ambition, managerial vision, and international strategy. As Shukla embarks on his mission, those formative stories feel freshly relevant.


Roland’s collection reminded us that spaceflight has always been more than just rockets. It is about cultures of innovation, long-term investment, and a willingness to ask questions that begin with “what if.” The early American space programme, for example, was as much about developing weather and communications satellites as it was about lunar landings. It showed how technology, when aligned with clear purpose and public support, could catalyse new industries and transform nations.


India too now stands at that threshold. From Chandrayaan’s pinpoint lunar landing to the Mars Orbiter Mission’s budget-friendly success, India has shown the world its knack for precision and frugality. But human spaceflight is a far more complex frontier, demanding life support systems, escape mechanisms, orbital docking and rigorous astronaut training.


ISRO’s upcoming Gaganyaan mission, backed by Rs. 10,000 crore, aims to send two-three astronauts into low Earth orbit for up to seven days aboard the HLVM3 launcher and an indigenous crew module. Beyond the engineering feat, it reflects years of quiet progress in materials, avionics and environmental systems.


As history shows, investment in space technologies pays rich dividends. GPS, remote sensing, weather prediction, precision agriculture, and even medical imaging have roots in space programmes. In India’s case, space technology already supports more than 60 civil applications, including flood forecasting, crop mapping, broadband connectivity, and disaster early warning. For every rupee spent on ISRO, independent assessments suggest a return of over three rupees in economic and societal value.


What sets this moment apart is not just the science but the symbolism. A second Indian in space reminds us that this is no longer an isolated event. It is the beginning of continuity. That this journey is taking Shukla to the International Space Station, a hub of scientific cooperation involving the United States, Europe, Japan, Canada, and now India, adds a new layer of meaning. It reflects India’s growing integration into the global community of spacefaring nations engaged in long-duration, orbital science.


India’s approach carries added significance in the evolving global context. The very definition of space power is shifting. It is no longer centered on Cold War-era prestige or loud demonstrations of might. Today’s spacefaring nations are those that embed space into national priorities, supporting livelihoods, education, security, disaster resilience, and climate monitoring. India’s ability to apply space science toward societal development gives it a distinctive model that is pragmatic, inclusive and scalable.


Unlike the space programmes of the past, which were often framed as geopolitical theatre, India’s journey remains rooted in service, sustainability, and inclusion. There is little appetite for spectacle. Instead, the focus is on strengthening national capability, supporting developmental goals, and offering responsible global partnerships. That India has done so while remaining cost-effective, peaceful, and technologically self-reliant is even more noteworthy.


This transition from aspiration to institution-building is critical. A spacefaring nation is not created by a single mission or a single astronaut. It is built through the patient layering of infrastructure, human resource development, cross-sector partnerships, and a culture that values exploration. India is beginning to meet each of these requirements. Its space ecosystem now includes vibrant startups, satellite builders, ground station operators, university-led payloads, and even space law experts. This broad-based momentum bodes well for the future.


We are not there yet, but we are on our way. Shukla’s flight is part of a longer arc that began with quiet resolve, took shape through institutional rigor, and is now reaching toward the stars with growing confidence. That he will work aboard the ISS reflects not only individual achievement but a national coming-of-age moment, one in which Indians are no longer observers of the space age but contributors to its future. India, slowly but surely, is becoming a spacefaring nation.


(The author is the former Director, Agharkar Research Institute, Pune, and Visiting Professor, IIT Bombay. Views personal)

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