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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.

Satkarma and Satphala: Key Features of Spiritual Philosophy

Writer: P.V. Laxmiprasad
P.V. Laxmiprasad
Feb 19
3 min read

In spiritual philosophy, especially in the Indian metaphysical tradition, the ideas of Satkarma and Satphala are the ethical foundation of human life. They illustrate the close connection between action and consequence, behavior and destiny, effort and fulfilment. Together, they emphasize a timeless moral principle: right action leads to right results.

 

They explore the close connection between action and consequence, behavior and destiny, effort and fulfilment. The term Satkarma is derived from two Sanskrit words, sat (truth, righteousness, goodness) and karma (action or deed). So, Satkarma refers to actions taken in line with truth, moral integrity, and spiritual awareness.

 

These actions are judged not just by how they look but by the intention (bhava) and awareness behind them. Spiritual philosophy highlights that Satkarma must be: - Ethically sound, guided by dharma (righteous duty) - Selfless, free from excessive ego or comes from two Sanskrit words: sat, meaning truth, righteousness, or goodness, and karma, meaning action or deed.


These actions are judged not only by their external appearance but also by the intention and awareness behind them. Spiritual philosophy stresses that Satkarma must be: - ethically sound, guided by dharma (righteous duty) - Selfless, free from excessive ego or personal gain personal gain - Conscious, performed with awareness and responsibility - Compassionate, promoting the well-being of others.


Texts like the Bhagavad Gita emphasize Satkarma through the idea of Nishkama Karma—action without attachment to results.


When someone performs his duty sincerely, without yearning for rewards, the action becomes purified and uplifting. Satphala literally means "true" or "right fruit." It represents the inevitable positive outcome of Sat - Conscious, done with awareness and responsibility - Compassionate, promoting the welfare of others.


When a person performs their duty sincerely, without seeking rewards, the action becomes pure and spiritually uplifting.


It represents the inevitable positive outcome of Satkarma. Unlike just material rewards, Satphala often shows up in subtler ways—inner peace, moral strength, mental clarity, and spiritual growth. Satphala may show itself as: - Inner harmony and contentment - Social trust and respect - Moral and spiritual growth - Long-term well-being that goes beyond a single lifetime Spiritual philosophy teaches that Satphala does not always come right away or in a visible way.


Sometimes, its effects unfold slowly, guided unlike just material rewards. Long-term well-being that extends beyond one lifetime Spiritual philosophy teaches that Satphala doesn’t always appear right away or in an obvious way. Sometimes its effects unfold slowly, guided by cosmic by cosmic justice.


This idea encourages patience, faith, and perseverance in living rightly. This principle creates a moral universe where nothing happens by chance.


People are not helpless victims of fate but active participants in shaping their destiny through conscious actions. This connection promotes: - Moral responsibility for one’s choices - Hope and resilience justice. This encourages patience, faith, and perseverance in righteous living. This principle creates a moral universe where nothing happens by chance.


People are not helpless victims of fate but active participants in shaping their destiny through deliberate actions. This connection promotes: - Moral responsibility for one’s choices - Hope and resilience in tough times - Spiritual discipline in tough times - Spiritual discipline, aligning life with better values Together, Satkarma and Satphala express a deep spiritual truth: our actions shape who we become.


They encourage people to pursue righteousness not out of fear or for rewards, but out of understanding and inner conviction. In a world that often craves instant gratification, these principles remind us that lasting fulfilment comes from truth, duty, and ethical actions. Through Satkarma, one plants the seeds of virtue; through Satphala, one gathers the fruits of spiritual insight.


Aligning life with higher values is the key principle of life. They encourage individuals to pursue righteousness not out of fear or for reward, but out of understanding and inner conviction. In a world focused on instant gratification, these principles remind us that lasting fulfilment comes from truth, duty, and ethical actions.


Through Satkarma, we plant the seeds of virtue; through Satphala, we harvest the fruits of spiritual realization. Essentially the idea that “what goes around comes around” isn’t just a saying- it isn’t something we see reflected in how our actions shape our experiences and the world around us every single day.


(The author has 44 books to his credit in English literature. Views personal.)

 

 

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