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By:

Rajendra Joshi

3 December 2024 at 9:20:26 am

Centre pushes for early sugarcane crushing

Mills seek special subsidy Kolhapur: Despite an estimated 30-40 lakh tonnes of sugar being available in excess of domestic demand, the Centre is stepping up efforts to keep sugar prices under control. The Union Food Ministry has urged Maharashtra, Uttar Pradesh and Karnataka to advance the 2026-27 sugarcane crushing season so that fresh sugar reaches the market before the existing stock is exhausted. Sugar mills, however, say an early start will come at a cost. They are seeking special...

Centre pushes for early sugarcane crushing

Mills seek special subsidy Kolhapur: Despite an estimated 30-40 lakh tonnes of sugar being available in excess of domestic demand, the Centre is stepping up efforts to keep sugar prices under control. The Union Food Ministry has urged Maharashtra, Uttar Pradesh and Karnataka to advance the 2026-27 sugarcane crushing season so that fresh sugar reaches the market before the existing stock is exhausted. Sugar mills, however, say an early start will come at a cost. They are seeking special financial assistance to compensate for the likely fall in sugar recovery and the reduction in cane weight that could result from crushing in October. India produced around 280 lakh tonnes of sugar last season. The season began with stocks of nearly 50 lakh tonnes, while annual domestic consumption is estimated at around 280 lakh tonnes. With about 35 lakh tonnes expected to remain in stock by September 30, the Centre wants the new season’s production to start flowing into the market without waiting for the traditional crushing cycle. Maharashtra, Uttar Pradesh and Karnataka account for nearly 80 per cent of India’s sugar production. The Union Food Ministry has therefore written to the chief ministers of the three states, asking them to bring forward the start of the 2026-27 crushing season. The push comes against the backdrop of a sharp movement in sugar prices. Ex-mill prices had earlier climbed to around Rs 68 per kg, pushing retail prices close to Rs 80 per kg. Following a series of measures by the Centre, ex-mill prices have since declined to around Rs 41 per kg. Yet, the government is looking at further measures to bring prices down and ensure that stocks move into the market. One such measure has been the approval of imports of one million tonnes of raw sugar. Since initial applications covered only around eight lakh tonnes, the Centre has invited applications for the remaining quota. It has also reduced the permissible stockholding limit for traders from 400 tonnes to 200 tonnes. The next major point of discussion will be the meeting convened by Union Food and Public Distribution Secretary Sanjeev Chopra with the sugar industry in New Delhi on September 8. The secretaries of Maharashtra, Uttar Pradesh and Karnataka have also been invited. West Indian Sugar Mills Association (WISMA) president B. B. Thombre said the Centre was pushing for crushing to begin around the middle of October. Traditionally, most mills in Maharashtra begin operations around November 15, largely because sugarcane harvesting labour becomes available only after Diwali. The industry is, however, willing to explore an early start between October 20 and 25. But early crushing could have significant implications. According to Thombre, sugar recovery could fall by around 1.5 percentage points, while the weight of sugarcane supplied by farmers could decline by 10-15 per cent. The industry will therefore seek special assistance for cane crushed between October 15 and November 15. At the September 8 meeting, it plans to demand a subsidy of Rs 500 per tonne for sugar mills and Rs 300 per tonne directly for sugarcane farmers.

India won’t finalise trade pact at gunpoint: Piyush Goyal



Union Minister Piyush Goyal has emphasized that India will not be pressured into any deal or make decisions under duress, especially when it involves safeguarding national interests. His statement follows US President Donald Trump's announcement of a 90-day pause on tariffs imposed on India — a move that is being seen as a limited opportunity for both nations to push forward a bilateral trade agreement still under negotiation.


"Humne pehle bhi kai baar kaha hai ki hum banduk rakhke kabhi negotiate nai karte hain. (I have said it many times before that we do not negotiate at the gunpoint)," Goyal told reporters when asked about the progress on the India-US bilateral trade agreement (BTA).


"Time restrictions are good as they encourage us to talk swiftly, but until we are able to protect the interests of the country and people, it is never good to be hasty," he added.


Goyal's remarks come at a time when India and the US have ramped up sector-specific discussions through virtual meetings, following the conclusion of broad-based terms of reference (ToRs) in New Delhi. These ToRs are aimed at supporting a “mutually beneficial, multi-sector” BTA, and focus on easing tariff and non-tariff barriers, improving market access, and strengthening supply chain resilience.


“We are progressing well on the BTA negotiations, and we expect to be ready with the first tranche of the agreement before the fall of 2025,” said a senior official familiar with the talks. “Possibly, the two countries would sign an early harvest deal where tariff and non-tariff issues will be addressed first.”


These negotiations are part of a larger strategic initiative set by Prime Minister Narendra Modi and US President Donald Trump, aiming to increase bilateral trade from $200 billion to $500 billion by 2030 — an internal goal dubbed “Mission 500.”


Although Goyal recognized the importance of timelines to keep discussions on track, he warned against finalizing any deal in haste. “Time restrictions are good as they encourage us to negotiate swiftly,” he said, “but until we are able to protect the interests of the country and people, it is never good to be hasty.”


He also stated that “all trade talks of the country are progressing well in the spirit of ‘India first’ and to ensure the pathway to Viksit Bharat 2047.”


The first round of in-person negotiations, which took place in New Delhi from March 26 to 29, was led by Assistant US Trade Representative Brendan Lynch and India’s Additional Secretary Rajesh Agrawal. Officials described the meetings as “friendly and cordial,” with both sides expressing a shared commitment to finalize the first stage of the agreement by September.


Subsequent follow-up meetings have been held virtually to work through sector-specific details. While the full text of the ToRs remains confidential due to a non-disclosure agreement, sources familiar with the discussions say they offer a “wide scope” for a comprehensive agreement.


On Friday, Foreign Affairs Minister S Jaishankar, without disclosing specifics of the trade discussions, said that India is eager to conclude the deal soon.

"Within a month of change in the administration, we have conceptually an agreement that we will do a bilateral trade agreement; that we will find a fix that will work for both of us because we have our concerns too. And it's not an open-ended process," he said.


In a notable development, Washington has suspended an additional 16% reciprocal tariff on Indian goods — including a global baseline tariff of 10% introduced from April 2 — until July 9, 2025. This pause presents a critical opportunity for both sides to finalize major components of the agreement.

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