https://www.livemint.com/opinion/online-views/is-india-watching-a-consumption-revival-mixed-signals-persist-gst-consumer-spending-11789989902299.html
Sunday, September 27, 2026
India’s ethanol vision needs a feedstock reality check: Sept 21 2026
The price of sugar has gone up. This is part of a normal cycle based on how sugar output moves. But, it comes at a time when there has been a push for the production of ethanol to reduce the import of crude oil. Some pertinent issues have been raised considering that sugarcane is also an important feedstock for producing ethanol. At a broader level, will this lead to pressure on crop supplies?
Ethanol can be produced from maize, rice and sugarcane-derived products. Around 45 per cent comes from maize and 20-25 per cent from rice, with the balance being sugar based. The economics of the mix is interesting. Maize is most preferred as 1 tonne of maize yields 380-400 litres of ethanol. In case of rice, it is slightly lower at 370-385 litres; for sugarcane it is 220-280 litres. Therefore, maize is highest in the pecking order among the three. Besides, there is also the availability issue which favours maize.
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Maize again comes at the lowest cost which is around Rs 20,000-21,000 per tonne. In case of rice, it is around Rs 38,000-39,000 per tonne while for sugar it works out to approximately Rs 37,000 per tonne. Therefore, companies would prefer to use maize. But, all three guzzle a lot of water. In the case of maize, it takes 500-900 litres to produce one kg, which goes up to 1,500-2,500 litres for sugarcane and 2,000-3,500 litres for rice. Hence, ideally more maize should be diverted for ethanol production.
For maize, there are three sources of demand. First, households, who account for a small part of the demand. Second, maize is also used for supporting cattle and poultry and accounts for 60 per cent of the total feed. Third, for industrial use, where starch is the product. Ethanol will now be the fourth dimension. Considering that production using GM variety seeds is not permitted for maize, output growth and, as a consequence, demand has to be met by using existing domestic seeds. This can be a problem as demand for ethanol is now going to rise with E20 being made mandatory. Higher demand could potentially increase prices which will trickle to prices of dairy, meat and related products. A tempting solution would be to allow the use of GM seeds to enhance output for only ethanol production.
Presently, the excess stocks of rice held by the FCI, which were procured earlier, have been sold in the market. As the quality of rice was low, it made sense to sell these stocks in the open market. But this cannot be the strategy going forward while considering a feedstock for producing ethanol. The higher water usage for rice and sugarcane may make maize a preferred feedstock. But the incremental output will only add to the pressure on water resources in the country. Curiously, there has also been a big push for the creation of data centres which are also heavy consumers of power and water. The supply of water will be a key challenge going ahead for the Indian economy.
Sunday, September 20, 2026
It is time for interest rates to go up: Forbes 31st August 2026
https://www.forbesindia.com/article/upfront/column/it-is-time-for-interest-rates-to-go-up/2997593/1
Book review: Guilty As Bought: The Hidden Forces Shaping Why Indians Buy by Krishnan 20th September 2026
Whether a consumer is buying a bar of soap or a computer, there is always some thought behind the decision, even if it takes more time to decide on a high value good than a cheaper one like a soap bar.
This decision of the consumer and the factors behind it is a question that consumer companies seek answers to, as this is what really drives consumption. As an extension it is always interesting to read the mind of consumers to figure out what goes on in terms of their tastes and preferences. Getting this right is a challenge, and many a times companies may go off track. That’s partly why some products fail and others succeed. The study of consumer behaviour is a science which needs to be understood. It is here that Krishnan Subramanian makes a mark with his rather insightful book, titled Guilty as Bought.
The sub-title of ‘the hidden forces shaping why Indians buy’ tells the reader what to expect from the book, and, in fact, will hold true for consumers anywhere in the world.
Subramanian is a known brand strategist who has invested over 30 years in tracking and analysing consumer behaviour. He starts off by saying that people under different ages, genders, geography and affluence would have varying patterns of consumption as it would be influenced by their environment in which they have been conditioned. But we all change, and he brings in how having a pizza today is now as common as dal chawal. There are evidently various factors at play that have caused such changes as well as moulded our consumption patterns.
Now, how does the author look at what drives consumption? There are three sets of factors that he looks at which combine psychology with his experiences. These are what he calls conscious behaviour, preconscious emotions and subconscious motivations. Basically, all reasons for consumption would be driven by these broad headings. Under these three headings he has 12 sub-headings which he calls ‘peels’, which form the core of the culture of consumption.
The conscious pack is something all of us probably are aware of and identify with. We always talk of ‘value’ for money and hence this is what marketers play on when appealing to the masses. At times we would like to ‘experiment’ with a new product or one that we have not used, which again is a conscious decision. This becomes more of a micro issue, which is nonetheless very important. He also talks about ‘choice’, where we as individuals would like to study an array of products before taking a decision. Having no choice could be a negative factor, especially if it does not suit our lifestyle or our budget. ‘Convenience’ is another attribute which we consciously opt for. Readymade foods or home delivery are good examples here. Last is ‘quality’, where discernment creeps in as we move up the value chain. All these factors play on our minds when we follow our consumption path.
The author gets a bit esoteric when he talks of pre-conscious emotions, which are a little difficult to assimilate. He talks of ‘care’, ‘trust’, ‘enjoyment’ and ‘nourishment’ which have evolved from different legacies through which we have been through. Trust is now moving from faith to fact, which is a very important point made by Subramanian as we accept nothing at face value. Nourishment is more deeply concerned with what we consume, which can be organic food or even peace of mind. Enjoyment has become more personal today as we move away from the spotlight of community enjoyment which was manifested in festivals or even watching TV together.
The subconscious motivations are driven by psychology, and the three drivers are aspiration, assertion and commitment. These can also be seen in consumption patterns as we move out of our comfort zone and become more individualistic. From being servile there is a movement to being assertive. This can be seen in our cricketers who have new-found confidence as evident in the swag and arrogance that can be seen in their body language and play.
The author’s focus is more on the urban youth, whom he terms ‘byteblazers’. But this section is tracked through different eras starting from post-independence to more recent times and how this group looked at consumption. The time chosen periods are ones of scarcity post-independence which got transformed into state-driven development in the 70s and 80s to liberalisation in the next two decades, and digitalisation that we see today.
While the author explains each of these 12 factors in separate chapters with several examples to make it relatable for the reader, he admits that these are not what we may be following in a conscious manner all the time. As his output is what goes into as inputs in devising any brand strategy, this book is a must read for anyone in the B2C business. Putting the pieces together for any successful product can mean borrowing from what Subramanian has put forward as 12 peels for which the boxes can be tick marked.
Guilty As Bought: The Hidden Forces Shaping Why Indians Buy
Krishnan Subramanian
KBI Publishers
Pp 297, Rs 820
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