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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 Still Small Voice

Jun 21, 2025
3 min read

In an anxious India, spirituality is emerging as a quiet force for emotional resilience that is rooted not in ritual, but in reflection.

In an age of ambient anxiety as we mediate a fast-paced, hyper-connected and often emotionally hollow world, the search for equilibrium is becoming a defining human pursuit. Stress has grown habitual. Loneliness, especially among the young, seeps through curated lives and pixelated screens. Therapy has gone mainstream while mindfulness has become a billion-dollar industry in tandem with self-help mantras, that endlessly echo online. Yet, away from this chorus of coping, something subtler and more primal is stirring in form of a ‘rediscovered spirituality.’


The beginnings of this change are rarely dramatic. There is no bolt of lightning, no revelatory flash. More often, it begins in silence; I recall watching my parents immersed in prayer, silently joining them in rituals observed without understanding, but absorbed nonetheless. A quiet tether is thus formed, not from faith but from familiarity, and it remains dormant until needed.


And when grief strikes, that dormant tether tightens and becomes a lifeline. After the personal loss of a loved one, I found myself turning more deeply towards Lord Shiva. Not out of tradition or obligation but as a way to cope, to share my fears and grief. I was not praying for success or blessings. I was simply speaking to something, or someone, that felt like it was listening like my father used to do.


And in that act of surrender, I discovered something profound: inner peace. What began as a practice became a refuge. Spirituality became emotional support an invisible anchor during life’s most turbulent phases.


Over time, prayer taught me more than just calmness it taught me patience. I began to understand that life, with all its ups and downs, is a continuous cycle. Unfulfillment is not the end. Every fall comes with learning. And just like night always gives way to a day, difficult times eventually pass.


When the world gradually returned to normal after the pandemic, I felt an inner urge to step out and seek something deeper. Travel had always made me uneasy, but this time was different. I gathered the courage to visit Kedarnath, a place I had only heard about in stories and seen in photographs. Nestled in the heart of the Himalayas, Kedarnath did not just offer a destination but a transformation.


That journey awakened something elemental. I was profoundly moved by the tranquil union of nature and divinity. Despite never being drawn to mountains before, standing before the ancient temple at the summit filled me with an overwhelming sense of calm, energy and fulfilment.


The trek, though demanding, became a metaphor for life - challenging, yet deeply rewarding. That experience lit a spark within me. I began trekking more often, not for adventure, but to reconnect with that quiet stillness I first encountered in the mountains. Over time, I started noticing spirituality in the simplest details: the warmth of a sunrise, the hush of a breeze, the rhythm of flowing water, even in the gentle grazing of sheep on a hillside.


And still, some ask: how can one believe in what cannot be seen? But invisibility has never invalidated reality. Wi-Fi signals remain unseen, yet are trusted because they work. They connect. So too with spirituality. It does not boast its power, but it reveals itself through result in form of a steadier heart, a quieter mind, a resilience that does not fracture.


Science, once sceptical, now seems to catch up. Quantum theory speaks of particles vibrating at frequencies of energy as the substratum of matter.


Thoughts and emotions are invisible, yet undeniably potent. They shape chemistry. They move lives. Spirituality, in its way, accesses that same energetic continuum, quietly tuning the self to something vaster than self.


And this is the message that bears repetition: spirituality is not the preserve of the old or the religious. It is not defined by incense, mantras, or stained glass. It is not tradition-bound; it is timeless.


For a generation quietly drowning in perfectionism, comparison, and disconnection, spirituality might be the most subversive act of self-preservation. It asks no loyalty. It does not demand belief. Sometimes, just the feeling that something hears you is enough to begin healing.


In its truest form, spirituality is not about miracles. It is about making peace with the lack of them. It is about safety without certainty, endurance without reward, faith without proof. And when one begins to sense that the divine does not reside elsewhere but quietly within, the search itself dissolves.


What remains is not an answer but an awakening.


(The writer is a cybersecurity professional and an avid traveler.)

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