top of page

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’s Reckoning with Crimes Against Women

Writer: Praveen Dixit
Praveen Dixit
Feb 5, 2025
4 min read

Updated: Feb 6, 2025

National Crime Records Bureau

Crimes against women in India remain a grim reality, their nature and frequency painting a stark picture of systemic failure. Official figures from the National Crime Records Bureau (NCRB) catalogue a litany of horrors: rape and murder, gang rape, domestic violence, dowry deaths, feticide, abetment to suicide, acid attacks, honour killings, sexual harassment and an ever-expanding digital frontier of cybercrimes in form of marital frauds, financial scams, fake digital arrests and the insidious spread of online sexual harassment. The scale is vast and the urgency to act unmistakable.


In significant legislative overhauls, the Indian government has sought to confront these crises head-on. The introduction of the Bhartiya Nyaya Sanhita, the Bhartiya Nagarik Suraksha Sanhita and the Bhartiya Sakshya Adhiniyam in July last year marks a departure from archaic colonial-era criminal laws, promising a more victim-centric approach to justice. These laws embrace technological innovation with electronic evidence now admissible in court and e-FIRs encouraged while summonses can be issued digitally and trials can proceed even in the accused’s absence - a crucial provision given how many perpetrators flee abroad to evade justice.


The government’s push for immediacy extends beyond legislation. The 112 India emergency app, operational nationwide, ensures that police response times in urban areas have dropped to under ten minutes. The cyber helpline 1930, along with the www.cybercrime.gov.in portal, allows victims to lodge anonymous complaints, mitigating the fear of social stigma. For survivors of sexual violence, justice is meant to be swift: investigations into rape cases must now conclude within two months, fast-track courts have been established, in-camera trials are mandated, and the victim’s identity cannot be disclosed in the media. Legal aid and financial compensation have also been introduced to help survivors rebuild their lives.


The intentions are noble. Yet, the battle is far from won. Laws alone cannot bridge the chasm of mistrust between victims and the justice system. Many women still hesitate to report crimes, fearing retribution, social ostracization or worse, apathy from law enforcement. If these new legal frameworks are to succeed, they must be accompanied by systemic and cultural change.


A first step is ensuring that victims feel heard from the very moment they seek help. All complaints related to sexual harassment and rape must be recorded via video, in the complainant’s own words, eliminating the possibility of manipulation by law enforcement or legal loopholes exploited by the accused. Transparency in the process is paramount.


Second, courts need to function at an accelerated pace. Zero-pendency must be the goal, and achieving it requires dedicated judicial bodies operating in two shifts. Delays in trials only embolden perpetrators and wear down victims’ resolve. Maharashtra’s former Director General of Police implemented a 24-hour charge sheet filing system for sexual harassment cases - a practice that should be adopted nationwide. Early legal intervention can ensure both the victim’s safety and a fair trial, free from external pressure or influence.


Third, bail policies must be revisited. Time and again, individuals accused of sexual crimes reoffend while out on bail. In such cases, stringent preventive measures should be imposed, including surety bonds from the victim’s relatives and women-led surety groups to ensure accountability.


Additionally, legal representation must be bolstered. Prosecutors should include a panel of lawyers with expertise in cybercrime, acknowledging the increasingly digital nature of gender-based violence. Victims navigating these cases require not only legal but also psychological support. Recognized counsellors must be available at every administrative subdivision to guide survivors through the arduous process of seeking justice.


Yet, justice cannot be purely reactionary. Prevention demands an overhaul of societal attitudes. Schools and colleges must implement continuous education programs on gender sensitization, sexual harassment laws, and digital safety. Self-defence training should be mandatory in educational institutions, ensuring that young women are equipped to protect themselves in an increasingly hostile world. Awareness campaigns for the 112 emergency app need to be relentless—broadcast daily on radio, television, and social media until its use becomes second nature. Today, even in metropolitan cities like Chennai, few are aware of this life-saving resource.


Another crucial, yet often overlooked, aspect of women’s safety is environmental design. Universities, workplaces, and public spaces must enforce strict access controls to prevent predators from targeting unsuspecting women. Surveillance systems, well-lit pathways, and rapid-response security personnel should be the norm, not the exception.


There is reason for cautious optimism. India has taken a significant step toward creating a legal system that prioritizes victims over bureaucracy, action over inertia. But the real test lies in implementation. Will police officers execute these laws with diligence and sensitivity? Will the judiciary commit to speed without sacrificing fairness? Will society at large abandon its culture of victim-blaming and rally behind survivors instead of shaming them into silence?


If these new laws are to mark a true turning point, they must be accompanied by a societal shift that moves beyond reactive measures. Anything less would be yet another betrayal of the countless women whose voices have long gone unheard.

(The writer is DGP (retd.) Maharashtra and recipient of the President’s Medal for Distinguished Service. Views are personal)

Comments

bottom of page