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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 Soul of Japan Lies in Its Simplicity

Writer: Archita Redkar
Archita Redkar
May 7
3 min read

From cherry blossoms and ancient temples to bullet trains and quiet acts of kindness, Japan offers an experience that is both seamless and deeply soulful.

Japan is not a place you simply visit—it is a place that gently settles into your heart. It leaves behind a feeling, quiet yet powerful, that stays long after the journey ends. Beyond its technological brilliance and economic strength, Japan is a beautiful balance of contrasts—where ancient traditions walk hand in hand with modern innovation, and where simplicity often holds the deepest meaning.


Situated in East Asia, Japan stretches across the Pacific Ocean, east of China, Korea, and Russia. It is made up of four main islands—Honshu, Hokkaido, Kyushu, and Shikoku—along with thousands of smaller ones. Much of its land is mountainous and forested, leaving limited space for habitation. Yet within these constraints, Japan has created cities that are marvels of efficiency and design—orderly, clean, and quietly vibrant.


Resting along the Pacific Ring of Fire, Japan frequently experiences earthquakes and volcanic activity. But what stands out is not vulnerability, but resilience. There is a deep calm and preparedness among its people—an ability to rebuild, adapt, and move forward with dignity.


Japan’s seasons unfold like poetry. Spring brings delicate cherry blossoms; summer arrives with colourful festivals and gentle rains; autumn paints the country in warm shades of red and gold, while winter blankets it in snow. Each season is not merely seen but deeply experienced—with awareness and gratitude.


Food in Japan is far more than nourishment; it is an expression of culture and care. Rice, seafood, and fresh vegetables form the heart of the cuisine, presented with elegance and simplicity. Meals are mindful, portions balanced, and beauty exists even in the smallest details. This deep connection with food contributes to Japan’s remarkable longevity and well-being.


Life in Japan flows with discipline, respect, and mindfulness. There is an unspoken harmony in daily life—trains arriving on time, streets remaining spotless, and people moving with quiet consideration for one another. Minimalism is not a trend here; it is a way of living, where joy is often found in small, simple moments.


Spirituality in Japan is gentle and inclusive. Shinto and Buddhism coexist naturally, blending into everyday life rather than standing apart from it. Visiting shrines, lighting incense, and offering silent prayers create a sense of peace and grounding.


Japan’s work culture reflects dedication and collective effort. The idea of continuous improvement is deeply ingrained, helping the nation achieve remarkable economic growth, while there is also growing awareness of the need for balance beyond work.


One of the most touching aspects of Japan is the strong sense of purpose that guides its people. Combined with community ties and an active lifestyle, it creates not just long lives but fulfilling ones.


Nature in Japan feels sacred and deeply respected. Cherry blossoms symbolise the beauty and impermanence of life, while bamboo forests and hot springs reflect a close harmony between people and nature.


Globally, Japan stands as a symbol of innovation and resilience. Despite limited natural resources, it has built one of the world’s strongest economies through technology, efficiency, and human spirit, while continuing to preserve its cultural roots.


For travellers, Japan offers an experience that is both seamless and soulful. Tokyo dazzles with modern energy, Kyoto preserves timeless traditions, Osaka delights with its food and vibrancy, and Hiroshima stands as a reminder of peace. Beyond these, places like Kanazawa, Takayama, and Shirakawa-go offer intimate glimpses into traditional life. We also arrange comfortable and premium tours to Japan, designed to make every journey more meaningful and memorable.


A traveller once lost his way on a quiet street in Kyoto while searching for a small temple. When he asked an elderly man for help, the man did not simply give directions—he walked with him to ensure he reached the exact place. Before leaving, he bowed gently and smiled, expecting nothing in return.


That moment stayed with the traveller forever. Because Japan is not just about places or experiences—it is about quiet gestures of humanity, warmth without words, and grace without effort.


And that is why Japan is not just a destination. It becomes a feeling—one that stays with you, softly and endlessly.


(The writer is a tourism professional and runs a company, Global Voyages. She could be contacted at goglobalvoyages.com. Views personal.)

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