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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.

Understanding Life and Death the Vedantic Way

Writer: P.V. Laxmiprasad
P.V. Laxmiprasad
Jan 10
3 min read

In a world searching for meaning amid uncertainty, Vedanta reminds us that death is not an end, but a transition.

In Indian philosophy, life and death are not seen as absolute opposites locked in endless conflict. Vedantic thought understands them instead as rhythmic movements within a larger, balanced cosmic order, where creation and dissolution exist in harmony. Rooted in the Upanishads, elaborated in the Bhagavad Gita, and refined by generations of thinkers, Vedanta encourages us to view human existence not as a straight line from birth to extinction, but as a meaningful journey between manifestation and withdrawal, marked by continuity rather than finality.


At the core of Vedanta lies the concept of Atman, the eternal Self that transcends all physical limitations. While the body ages, weakens, and eventually perishes, the Self remains untouched by time and change. The Katha Upanishad affirms this enduring truth by declaring that the Self is unborn, undying, and eternal. Life and death, therefore, apply only to the physical and psychological dimensions subject to transformation. Death is a passage from one state of being to another, not an end.


This philosophical view challenges the modern tendency to see death as a disruption or even a failure of existence. Contemporary society, driven by speed, productivity, success, and the desire for permanence, often treats mortality as an unwelcome interruption to progress. Death is pushed out of sight, hidden behind euphemisms and hospital curtains, while youth and endless growth are relentlessly celebrated. Vedanta offers a different perspective: awareness of death does not diminish life; rather, it deepens and enriches it. By accepting impermanence, one learns to live with greater attentiveness, humility, gratitude, and compassion for both oneself and others.


The Bhagavad Gita offers one of the most powerful and enduring expressions of this understanding. Krishna reminds Arjuna that just as a person discards old clothes and puts on new ones, the Self sheds the worn-out body and takes on another. This metaphor gently softens the fear of death while still acknowledging its depth and seriousness. It suggests that change, not annihilation, governs existence at every level. Life flows naturally into death, and death, in turn, prepares the ground for renewal and new life.


Vedanta often explains this movement through images drawn from nature and everyday experience, making its ideas easier to grasp. Day gently shifts into night, wakefulness turns into sleep, and inhalation naturally leads to exhalation. The Mandukya Upanishad compares life and death to the states of waking, dreaming, and deep sleep, presenting them as part of a continuous cycle of consciousness. Death is akin to deep sleep—a temporary withdrawal from sensory experience—followed by another awakening into a different state of being. Such imagery does not romanticise death; rather, it makes it more comprehensible, easing the fear that arises from ignorance and uncertainty.


Importantly, Vedanta does not promote withdrawal from life or the glorification of death. Instead, it emphasises the ideal of jivanmukti—liberation while living, where inner freedom coexists with active participation in the world. A person who understands the temporary nature of the body and the continuity of the Self remains fully engaged with life, yet inwardly free and unburdened by fear. Duties are performed without excessive attachment, relationships are cherished without possessiveness, and suffering is faced with calm acceptance and emotional resilience.


In times of widespread anxiety—such as during pandemics, environmental crises, and violent conflict—the Vedantic view becomes especially relevant. It does not deny grief, but it prevents despair. It teaches that life and death are partners in a cosmic rhythm, not enemies in battle. This awareness encourages ethical living, as we recognise that every action leaves an imprint beyond a single lifetime.


Ultimately, Vedanta points beyond the oscillation itself. If life and death are always in motion, there must be a still centre. That centre is Brahman—unchanging, infinite consciousness. To glimpse this truth, even briefly, transforms one’s relationship with mortality. By realising that we are more than bodies bound by time, we learn to live wisely and to face death with dignity.


This insight underscores the enduring relevance of Indian Vedantic philosophy in a world searching for meaning amid uncertainty.


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

 

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