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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.

Riding for a Cause

Writer: Chinmay Gaikwad
Chinmay Gaikwad
Jan 18, 2025
3 min read

Updated: Jan 20, 2025

Riding for a Cause

Being a passionate biker myself, I’ve always believed that the open road holds a unique power, not just to free the soul, but to connect, protect and empower those in need. Over the years, I’ve come across extraordinary stories of motorcycle groups transforming lives, from safeguarding children to redefining freedom for women and uplifting entire communities.


Case in point is the Bikers Against Child Abuse (BACA) in the U.S. This is no ordinary motorcycle club. It is an extraordinary organization with a singular mission: to shield and empower children who have suffered abuse. Established in 1995 in Provo, Utah by John Paul ‘Chief’ Lilly, BACA began with a modest ride of 27 bikers supporting an 8-year-old boy too terrified to leave his home. Since then, the organization has expanded significantly with chapters forming nationwide.


BACA’s members come from diverse backgrounds and undergo thorough training, fingerprinting and comprehensive FBI background checks to ensure they are well-prepared to assist abused children. These bikers collaborate with local and state authorities to provide a sense of security and protection to the children they support. They stand guard outside homes, accompany children to court, and offer a ‘biker family attitude’ that helps these children feel safe and not alone.


One child, known as Froggy, along with her two brothers, experienced severe physical and emotional abuse. During their most challenging times, they found comfort and protection within the BACA community. The bikers’ presence and support have significantly improved their lives, making them feel secure and empowered.


In a similar vein, Indian motorcycle riders are also contributing to social causes and promoting education in rural areas.


Founded in January 2011 by Urvashi Patole, The Bikerni has become a symbol of empowerment for women in India, challenging gender stereotypes and carving a space for women in the male-dominated world of motorcycling. What started as a small group of passionate riders has grown into a nationwide movement, with chapters in nearly every major city.


The Bikerni’s mission is clear: to provide an equal platform for women motorcyclists while fostering confidence, independence, and solidarity. Beyond riding, the group emphasizes community and empowerment, encouraging members to treat each other like family and participate in social causes, making their impact felt far beyond the road.


For these women, motorcycling isn’t just a sport but a statement of liberation and defiance against societal norms. With every journey, The Bikerni redefines freedom and gender roles, inspiring women across India to embrace the open road. Together, they ride towards an empowered future.


In Pune, the Sahyadri Trail Seekers, a biker community established in 2022, organizes events like the ‘Giving Back Ride.’ On January 22, 2023, they rode to Ghogati Vasti near Chandar Village (Panshet). The kind villagers warmly welcomed them, and the bikers, in return, decided to assist the community by distributing household items for Ghogati Vasti and notebooks and books for school students in Chandar Village.


The event held on April 8-9, 2023, was one of their largest trail rides, combining social work with camping by Panshet Dam. The schedule included meet-ups, an exhilarating trail ride, distributing goods, and camping. Although contributions to the cause were encouraged, they were not mandatory.


The Sahyadri Trail Seekers’ efforts demonstrated the power of community and the positive impact bikers can have in supporting and uplifting those in need. Their dedication to social causes, such as donating books and stationery, highlights their commitment to making a meaningful difference in people’s lives.


Pradip Pawar, founder of the Sahyadri Trail Seekers and an avid biker and instructor, envisions expanding his community with the help of doctors to conduct safety awareness and first aid sessions. Additionally, he plans to collaborate with traffic police to raise awareness about traffic rules.


(The author is a media professional.)

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