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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.

Plastics Deconstructed: The Big Five and the Seven Codes

Writer: Dr. Sanjay Joshi
Dr. Sanjay Joshi
Nov 28, 2025
3 min read

While nearly all plastics are made from fossil fuels, their differences become clear only when we look at the seven RIC codes.

Dear Reader, it feels nice to take a journey down the ‘history lane’, and that is what I did over the past three weeks. In the first part, we began with Abeer’s vivid and haunting dream—a child’s gentle warning about the sorrow of our oceans.


In the second part, we traced plastics from their origins to their surprising rise as everyday companions in our homes. And in the third part, we explored how human ingenuity, driven by necessity and innovation, ushered in a new era of synthetic materials that transformed modern manufacturing.


So far, so good. Now, let us return to the present scenario and understand how this ‘wonder material’ is making life miserable not only for us humans but for all living beings on the planet. But before that, it will be worthwhile to learn the basics about plastics.


The big five

Almost 99% of plastics are made from fossil fuels. On the basis of composition, there are many different types of plastic. But practically almost 90% of all the plastics produced are of five major types, which are as follows:


Polyethylene (PE) accounts for 34.4% of global plastic production, followed by polypropylene (PP) at 24.2%, polyvinyl chloride (PVC) at 16.5%, polyethylene terephthalate (PET) at 7.7%, and polystyrene (PS) at 7.3%. Ethylene is a critical feedstock for the production of polyethylene, PVC, PET, and polystyrene—together representing about 65% of all plastics made by weight. Propylene, likewise, is the main raw material used to produce polypropylene.


Taken together, this means that most of the world’s plastics can be traced back to the product streams of just two industrial chemicals: ethylene and propylene. While not all fossil fuels are turned into plastic, virtually all plastics are derived from fossil fuels. This is further reinforced by the fact that the biggest companies in both sectors are integrated giants that produce fossil fuels as well as plastics.


Another key input, naphtha, comes directly from oil refining, and its production is concentrated among major oil companies with large refining capacities. If current trends in oil use and plastic manufacturing continue, plastics alone are projected to consume 20% of all oil produced by 2050. Understanding these industrial linkages is essential for addressing the global plastic pollution crisis and recognising the role that corporate actors play in driving it.


Plastics around us

Let us now take a closer look at the plastics we encounter in our daily lives. Plastics come in an astonishing range of shapes, sizes, and colours, and each variety serves a different purpose. To make sense of this diversity, they are grouped into specific categories based on their chemical composition, properties, and intended use.


For instance, certain types of plastic are sturdy and safe enough to be reused multiple times, while others are designed for single use because of the chemicals or additives they contain. Similarly, some plastics can be easily recycled and turned into new products, whereas others require careful handling and must be discarded in specialised ways.


RIC System: 7 Numbers

To make informed choices about the products we use every day, it is important to understand the different types of plastics, how they differ from one another, and the impact each type has on the environment. Plastics are broadly classified into seven major categories under the Resin Identification Code (RIC) system, with each type assigned a number from 1 to 7.


This number is usually printed or embossed on the product, placed inside a small triangle made of chasing arrows—something we often overlook. The next time you buy a bottle of drinking water, just turn it over and look at the base. You will notice the number 1 stamped inside that triangle, quietly telling you what kind of plastic the bottle is made of.


Curious to know what these numbers mean and how they guide recycling and disposal? Hold on to that curiosity until next Saturday. Untill then, have a wonderful weekend!


(The author is an environmentalist. Views personal.)

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