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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.

Taming the Unseen

Oct 11, 2025
3 min read

The Physics Nobel for three pioneering Berkeley physicists this year marks a watershed moment for quantum mechanics.

John Clarke, Michel Devoret and John Martinis
John Clarke, Michel Devoret and John Martinis

Earlier this week, the Royal Swedish Academy of Sciences presented the field of quantum mechanics with a fitting centennial gift: the 2025 Nobel Prize in Physics, which went to physicists John Clarke, Michel Devoret and John Martinis for their work done four decades ago at the University of California, Berkeley.


The trio have redefined what quantum physics could mean. Their work showed that the spooky, counterintuitive laws governing the atomic world could be coaxed into appearing at human scales, bridging a divide that had existed since the birth of the discipline itself. It echoed debates and problems chronicled in classic texts such as Max Born’s ‘Atomic Physics’ (English translation pub. 1935) and Werner Heisenberg’s ‘The Physical Principles of the Quantum Theory’ (1930).


Quantum mechanics, forged in the intellectual ferment of the 1920s by pioneers such as Niels Bohr, Werner Heisenberg, and Erwin Schrödinger, has long unsettled even its greatest minds.


In 1926, Albert Einstein famously wrote: “The theory [quantum mechanics] produces a good deal but hardly brings us closer to the secret of the Old One. I am at all events convinced that He [meaning God] does not play dice.” Einstein was responding to Max Born, who had argued that the heart of the new theory beats randomly and uncertainly, as if suffering from arrhythmia. Whereas classical physics promised that push here yields a predictable outcome there, quantum mechanics suggested that even under identical conditions, the same action could produce a range of results, each with a calculable probability and sometimes outcomes that seemed entirely contrary. Einstein’s objection was not to the mathematical formalism itself, which worked brilliantly, but to the probabilistic interpretation that suggested nature at its core was inherently uncertain.


In the quantum realm, particles exist not in fixed positions but as clouds of probability; they can appear to tunnel through barriers they have no right to cross. It is a world in which determinism dissolves, to be replaced by shimmering uncertainty. For decades, this bizarre behaviour was thought to belong exclusively to the infinitesimal (electrons, photons, and atoms) and never to the tangible world of wires and circuits (something that was explored in Richard Feynman’s celebrated lectures on physics in the 1960s).


Clarke, Devoret and Martinis upended that assumption. In the early 1980s, at the University of California, Berkeley, they took inspiration from the tools of low-temperature physics and turned it to a new purpose: showing that the quantum could be engineered.


Working with ultracold superconducting circuits, they demonstrated that vast swarms of electrons could collectively display ‘quantum tunnelling.’ The circuits, visible to the naked eye, behaved like giant quantum particles, a revelation that suggested quantum mechanics was not a special rulebook for the microscopic but a universal language that, under the right conditions, governed everything.


By taming that chaos, the Berkeley trio blurred a boundary that had seemed immovable since the days of Bohr’s Copenhagen debates.


The implications were profound. Their findings virtually birthed ‘quantum electrical engineering’ - a discipline that transformed quantum mechanics from philosophical curiosity into practical craft. Circuits inspired by the trio’s experiments are now used to simulate atoms, detect faint particles, and serve as qubits, the building blocks of quantum computers.


That last application, curiously, went largely unmentioned in this year’s Nobel citation. Yet it is impossible to ignore. Without the pioneering work at Berkeley, the race now underway between Google, IBM, and Chinese labs to build a fault-tolerant quantum computer would have remained a fantasy. John Martinis himself would later lead Google’s quantum supremacy experiment in 2019, when a superconducting circuit performed a calculation no classical supercomputer could manage in a feasible time. The roots of that triumph trace directly back to the trio’s early insight: that quantum effects could be scaled up, controlled and harnessed - an insight foreshadowed in foundational studies like British-American theoretical physicist Anthony Leggett’s seminal ‘Macroscopic Quantum Systems’ (1980).


Leggett’s theoretical framework laid the groundwork for understanding phenomena such as superconducting circuits, which Clarke, Devoret and Martinis would later manipulate in the laboratory to make quantum effects tangible and measurable.


Quantum theory has always been as much a philosophical challenge as a scientific one. Its discovery in the early 20th century forced physicists to abandon the certainties of Newtonian order. The 2025 Nobel Prize celebrates the moment where quantum mechanics, once the physics of the invisible, has finally become the physics of possibility.

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