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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.

Japan: A Symphony of Simplicity and Soul

Writer: Archita Redkar
Archita Redkar
Apr 23
3 min read

More than a destination, Japan is an experience in balance.

Japan is not a place you simply visit—it gently settles into your heart. It leaves behind a quiet yet powerful feeling that lingers long after the journey ends. Beyond its technological brilliance and economic strength, Japan is a striking balance of contrasts—where ancient traditions meet modern innovation, and simplicity holds the deepest meaning.


Situated in East Asia, Japan stretches across the Pacific Ocean, east of China, Korea, and Russia. It is an island nation of four main islands—Honshu, Hokkaido, Kyushu, and Shikoku—along with thousands of smaller ones. Much of its land is mountainous and forested, leaving limited space for habitation. Yet within these natural constraints, Japan has created cities that are marvels of efficiency—orderly, clean, and quietly vibrant.


Resting along the Pacific Ring of Fire, Japan frequently experiences earthquakes and volcanic activity. Yet what stands out is not its vulnerability, but the resilience of its people. There is a deep strength here—a calm preparedness and an ability to rebuild, adapt, and move forward with dignity. It is a quiet strength, rarely spoken of, yet deeply felt.


Japan’s seasons unfold like poetry through the year. Spring brings the delicate bloom of cherry blossoms, reminding us of life’s fleeting beauty. Summer arrives with colourful festivals and gentle rains that breathe life into the land. Autumn paints the country in warm hues of red and gold, while winter wraps it in a quiet blanket of snow. Each season is not just seen, but deeply experienced—with emotion, awareness, and gratitude.


Everyday Grace

Food in Japan is far more than nourishment; it reflects the country’s culture and care. Every dish is shaped by balance, seasonality, and respect for ingredients. Rice, seafood, and fresh vegetables form the core of the cuisine, presented with elegance and simplicity. Meals are mindful, portions are measured, and even the smallest details matter. This approach to food is often linked to Japan’s remarkable longevity and overall well-being.


Life in Japan is marked by discipline, respect, and mindfulness. There is a quiet order in everyday routines—trains arriving on time, spotless streets, and people moving with consideration for one another. Minimalism is not just an aesthetic but a way of life. Joy is often found in simple moments: a cup of tea, a walk through a garden, or the changing colours of the seasons.


Spirituality in Japan is gentle and deeply woven into daily life. Shinto and Buddhism coexist naturally, blending into everyday rituals rather than standing apart. People visit shrines, light incense, and offer silent prayers as a way of staying connected to something deeper. It creates a sense of peace, acceptance, and quiet grounding.


Japan’s work culture reflects dedication, sincerity, and collective effort. The idea of continuous improvement is deeply ingrained, helping the nation achieve remarkable economic growth. At the same time, there is growing awareness of the need for balance—for slowing down and creating space for life beyond work.


Nature in Japan feels sacred and deeply respected. Cherry blossoms symbolise the beauty and impermanence of life, while bamboo forests evoke a sense of calm. From snow-covered landscapes to tranquil gardens and steaming hot springs, the natural world is not just admired, but honoured.


Globally, Japan stands as a symbol of innovation and resilience. Despite limited natural resources, it has built one of the world’s strongest economies through technology, efficiency, and human spirit. Its contributions to industries such as automobiles, electronics, and robotics have shaped the modern world, even as it remains firmly rooted in its cultural traditions.


Enduring Impressions

For travellers, Japan offers an experience that is both seamless and soulful. It is safe, clean, and remarkably well-organised. Its high-speed trains run with astonishing precision, connecting cities that each tell a different story. Tokyo dazzles with modern energy, Kyoto preserves timeless traditions, Osaka is celebrated for its food and vibrancy, and Hiroshima stands as a quiet reminder of peace. Beyond these, places like Kanazawa, Takayama, and Shirakawa-go offer a more intimate glimpse into traditional life.


And then there are the moments that truly define Japan. A traveller once lost his way on a quiet street in Kyoto while searching for a small temple. When he asked an elderly man for help, the man did not simply give directions—he walked with him for nearly fifteen minutes, ensuring he reached the exact place. Before leaving, he bowed gently and smiled. There was no expectation. Only kindness.


That, perhaps, is Japan—not just a destination, but a feeling that stays with you long after the journey ends.


(The writer is a tourism professional and runs a company, Global Voyages. She could be contacted at goglobalvoyages@gmail.com. Views personal.)


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