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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.

The Power of Seeing the World

Writer: Archita Redkar
Archita Redkar
Jan 1
3 min read

The world is more magical than any dream—and nothing builds intelligence, confidence, and emotional maturity like travel.

As St. Augustine said, “The world is a book, and those who do not travel read only one page.” Seeing the world is more magical than any dream. Giving exposure to ourselves and our children is one of the most valuable gifts we can offer in life, because nothing develops intelligence, confidence, and emotional maturity like travel. When we step outside our regular environment, we learn to see life from different angles, and that helps shape stronger thinking and emotional balance.


Taking a break from our routine and travelling to our favourite destinations — or simply spending time in nature — brings immense peace to the mind. Travel teaches us about new cultures, broadens our perspective, refreshes our spirit, renews our energy, and helps us return to our work with greater focus, positivity, and enthusiasm. Even short trips can provide meaningful learning and relaxation. Travel allows us to breathe differently, think differently, and live differently, reminding us that life is not meant to be lived only within deadlines and responsibilities.


Often, children do not have the opportunity to travel, which is truly unfortunate. With their busy school schedules, constant academic pressure, and structured routines, they rarely get their own space or time to free their minds and experience the world around them. This often limits their perspective and can make them feel insecure and under-confident. Travelling allows children to see new surroundings, interact with different kinds of people, and slowly build independence. It is extremely important for children to travel — whether with their parents or, as they grow older, even independently to nearby places. Travel helps them open their minds, build confidence, and gain a deeper understanding of life beyond textbooks. It teaches adaptability, social understanding, and real experience-based learning that classrooms alone cannot provide.


As Sir Matthew Karsten beautifully says, “Investment in travel is an investment in yourself.” Travel should not be seen only as entertainment but as self-development. Every journey adds something meaningful to personality, knowledge, and emotional strength.


As 2026 begins, with new hope and fresh energy, we can make a resolution to travel more and explore the world! This is everyone’s dream—and it can come true with good planning, financial discipline, and physical fitness. Travel is not only about international trips; even discovering our own country, nearby destinations, heritage locations, nature spots, or cultural cities can be deeply enriching.


For most people, travel resolutions are about being more intentional: planning smarter, immersing in culture, and managing finances wisely are major factors. Also packing light, trying local food and language, and balancing adventure with relaxation — without overspending. Also, some more aspects of it. It may sound theoretical, but it truly works when followed practically.


Responsible travel creates meaningful memories without unnecessary stress.


Fitness is the first key to travel. We can explore only when we keep ourselves healthy and active, so daily walking and regular exercise are essential. Good stamina helps us enjoy journeys better, participate in activities comfortably, and stay energetic throughout the trip. Financial planning is equally important. Instead of compromising with uncomfortable accommodations and unhygienic food, choose hygienic and centrally located hotels and restaurants. Even during a one-night stay, good rest and good food matter because they directly affect comfort, health, and overall travel enjoyment. So reach out to goglobalvoyages.in team for your premium travel assistance.

• Budget ahead and set savings goals for travel.

• Plan early to reduce stress and get better deals.

• Be budget-conscious — travel smart, not cheap.


As J.R.R. Tolkien said, “Not all those who wander are lost.” Travel truly has the power to broaden minds and transform lives. It helps people understand the world, respect diversity, and appreciate life in a more meaningful way.


Travel is not just something I am good at — it is something I live. I meet new people, experience new cultures, taste new cuisines, and witness moments that touch my heart deeply. Many experiences leave me speechless… and then turn me into a storyteller.


So dear friends, keep travelling!


And remember — if you wish to travel far and fast, travel light. Let go of envy, jealousy, unforgiveness, selfishness, and fear… and embrace the beautiful world waiting for you.


(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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