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By:

Parashram Patil

14 January 2026 at 8:49:45 pm

Sugar Rush, Structural Hangover

India’s sugar crisis is less about one bad season than about the uneasy trade-offs between food, fuel, water and farm incomes India’s latest sugar-price shock is a reminder that agricultural markets rarely obey the neat logic of supply and demand. Retail sugar prices surged towards Rs. 62–Rs. 67 a kilogram before easing after government intervention. But the episode exposes a deeper problem: India is asking its sugar economy to serve too many objectives at once - support farmers, supply...

Sugar Rush, Structural Hangover

India’s sugar crisis is less about one bad season than about the uneasy trade-offs between food, fuel, water and farm incomes India’s latest sugar-price shock is a reminder that agricultural markets rarely obey the neat logic of supply and demand. Retail sugar prices surged towards Rs. 62–Rs. 67 a kilogram before easing after government intervention. But the episode exposes a deeper problem: India is asking its sugar economy to serve too many objectives at once - support farmers, supply consumers, produce ethanol, conserve water and compete globally. The immediate squeeze was caused by several forces arriving together. Domestic sugar production fell short of initial expectations after erratic monsoons, waterlogging and uneven rainfall affected major cane-growing regions. At the same time, the rapid expansion of the E20 ethanol programme has diverted more cane juice and heavy molasses towards distilleries and away from sugar production. Ethanol is an important component of India’s energy strategy, but every tonne of cane redirected towards fuel has implications for the availability of sweeteners. Inventory Troubles Then came the inventory problem. Closing stocks fell to multi-year lows just as festive and wedding-season demand began to rise. Bulk consumers accumulated supplies, while speculative holding added to the pressure. What began as a supply squeeze therefore became a confidence problem, amplified by expectations of further scarcity. The familiar response is to intervene. Yet abrupt export restrictions, emergency duty-free imports and changes in release quotas may calm prices today while making investment decisions harder tomorrow. The real requirement is not less government, but better government: one that anticipates shortages rather than reacting to them. India needs a real-time sugar intelligence system combining satellite-based weather information, actual mill yields and independently verified inventory data. Policy makers should know much earlier whether the crop is heading for a surplus or deficit. Ethanol procurement prices should also be calibrated against minimum domestic sugar-reserve requirements. Energy security should not accidentally become food-price insecurity. The problem is particularly acute in Maharashtra, one of India’s great sugar-producing states. Its cooperative sugar belts demonstrate both the strengths and limitations of the traditional model. Government intervention has historically shaped cane prices, mill operations and monthly sugar releases. Some regulation remains necessary, especially where millions of farmers depend on the industry. But rigid controls can also discourage efficiency and innovation. Mills need greater operational flexibility, accompanied by transparent safeguards for consumers and growers. Water Woes Water is the harder question. Sugarcane is a thirsty crop, and its intensive cultivation in semi-arid regions creates an uncomfortable contradiction: a crop that provides livelihoods and supports an enormous processing ecosystem can also consume resources that are increasingly scarce. Maharashtra cannot indefinitely treat water-intensive cane cultivation as though water were unlimited. The answer is not to abandon sugarcane, but to grow it more intelligently. Precision irrigation, including micro- and subsurface-drip systems, can reduce wastage and ease pressure on groundwater. Farmers also need greater encouragement to diversify, adopt climate-resilient varieties and use mixed-cropping systems. Lower chemical dependence and better soil management can reduce input costs while making farms more resilient to erratic weather. Environmental management must extend beyond water. Pre-harvest burning releases smoke, toxic gases and fine ash, imposing costs on local air quality. Mechanised green-cane harvesting and better management of crop residue offer a route towards cleaner production without sacrificing agricultural productivity. The larger opportunity lies in moving India’s sugar industry up the value chain. India has the land, processing capacity and cooperative infrastructure to become a global leader. But leadership cannot mean simply producing more bulk sugar and seeking overseas markets whenever domestic stocks permit. Indian mills and farmer organisations should capture more of the value created after the cane leaves the field. Farmer-producer organisations and cooperatives can participate more deeply in ethanol derivatives, cogenerated power, refined and specialty sugars and other downstream products. Traceability and sustainable production could help Indian sugar command better prices in premium international markets. None of this will work without predictable trade policy. Exporters cannot build reliable global businesses if the rules change abruptly whenever domestic prices rise. Nor can farmers make long-term planting decisions when the economics of their crop are repeatedly altered by administrative intervention. India needs a sugar policy that thinks several seasons ahead. For Maharashtra and the rest of the country’s sugar economy, that means better data, smarter water use, predictable trade rules, more diversified farms and greater value addition. (The writer is a member of Maharashtra Agriculture Price Commission. Views personal.)

Bad Roads, Ugly Politics


The pathetic state of roads in Mumbai city as well as its suburbs has made daily commute a dangerous affair. The residents are miffed with the BMC over its lackadaisical attitude. Mumbaikars tweet photos, post videos to grab attention, but everything is in vain. Who cares for the common people. Backbreaking journeys have become part and parcel of life. Political leaders are busy mud-slinging.


This year the monsoon took a break after almost four and half months. During this time some of the roads virtually became non commutable. It may be recalled that the Chief Minister Eknath Shinde first announced to make Mumbai roads pothole free.


Its almost two years now the BMC has concretised only 9 percent of roads it planned to concretise. This decision was taken when it came to light that due to the properties of bitumen in asphalt roads, potholes are a regular occurrence due to contact with water during monsoons.


Hence, to solve the problem of potholes, the corporation has adopted a policy of cement concreting of 6-meter-wide roads in phases. The decision was taken but the dilly-dallying affair made things more difficult.


Mumbai’s traffic does put a lot of strain on roads which is not the case in the other developed countries. Second most important aspect is concretisation of roads is done partly and in phases.


The worst problem which is faced is repeated digging for cables and drainage, which weakens the roads. Above all corruption in BMC makes matters worse as a result everything comes to grinding halt.


According to experts, repairing potholes is a reaction with symptomatic treatment. By and large we are dispensing superficial treatment without addressing the root cause. The long-term solution will be to have roads with no potholes but what we need is the means and technology to achieve this. But for this political will is necessary which we lack on every step.


Mumbaikar’s are convience that corruption in the municipal corporation is the main reason. Contractors have had a monopoly over the last 20 years and this is the reason why reputed companies never come ahead for these projects.


As a result, in the name of attendance and repair, the BMC does shoddy work. Crores are spent but the end result is nothing. The BMC is not paying attention to the crust. If the crust is weak, potholes will see an increase. Without any thought or technical know-how, potholes are filled with cold mix.


This is the reason why the city and suburbs continue to have craters on the roads.


Craters, a serious threat to the safety and security of people. Mumbaikars fade up from their repeated visits to orthopedic surgeons.


They are in a mood to teach a proper lesson to those who were at the helm of the affairs.

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