Best of the Week: From Amritsar's aam papad to mango orchards in crisis

Mint

6 hours ago

Narrow lanes where history lingers, vibrant bazaars, and centuries-old temples—Amritsar has always been a city of stories. As the largest city on the Indian side of Punjab, it's known not just as the spiritual home of Sikhism, but also as a destination for serious food lovers.
I was in the city last week and, unsurprisingly, spent a good deal of time eating. One local favourite that stood out was the aam papad. These chewy sheets of sun-dried mango pulp—sometimes sweet, sometimes spiced—are a popular treat across Punjab. While the region doesn't grow many mangoes, it certainly knows how to preserve the fruit and enjoy it year-round.
But while the aam papad holds its own, India's mangoes are facing a tough time. Once hailed as the 'king of fruits', the mango is now caught in a perfect storm amid declining orchard health, increasing chemical use, and erratic weather patterns. Over 70% of India's mangoes are now grown using paclobutrazol, a chemical that forces early flowering and ripening at the cost of quality. Traditional practices are being sidelined in favour of short-term gains.
Climate change is worsening the situation. In key mango-growing states like Tamil Nadu, Andhra Pradesh, and Uttar Pradesh, unusual rain and heat are disrupting flowering and harvests. Despite producing over 23 million tonnes of mangoes annually, India's average yield remains stagnant at 9.5 tonnes per hectare. Exports? Less than 0.5%, largely due to the fruit's short shelf life and poor supply chain infrastructure.
So while Amritsar's aam papad hits all the right notes, the mango story behind it is slowly turning bittersweet.
Over the past decade, smartphones have driven India's electronics manufacturing, with 99% of the devices sold in the country now assembled locally. Thanks to the government's ₹ 1.9 trillion productivity-linked incentive (PLI) scheme, mobile phone exports soared from ₹ 1,566 crore in 2014 to ₹ 1.2 trillion in 2024. Yet, 85-90% of the electronic component value is still imported. India's assembly-heavy model adds just 10-15% value, leaving the country's ambitions to become a global manufacturing hub incomplete. To fix this, the government launched a ₹ 22,919 crore component PLI scheme to localise critical inputs like camera modules and printed circuit boards. But making components is far more complex than assembling phones as it demands deep engineering, high-precision manufacturing, and a long-term ecosystem play.
Despite sluggish earnings growth, Indian companies handed out a record ₹ 4.9 trillion in dividends in FY25, with more than half going to promoters. A Mint analysis of 496 BSE 500 companies shows promoters took home ₹ 2.5 trillion, led by private-sector owners, who saw a 36% rise in payouts. Those with over 70% ownership reaped the biggest gains—up 45% year-on-year—raising questions about whether boards are prioritising shareholder value or promoter cash-outs. As dividends outpace profits, a key question emerges: are promoters milking cash cows or managing capital wisely?
India is ramping up its energy security playbook by planning six new strategic petroleum reserves, aiming to expand emergency crude stockpiles to 90 days of import cover. Engineers India Ltd is conducting feasibility studies, with sites including Mangalore SEZ and Bikaner's salt caverns. This push comes as oil markets face renewed volatility, especially the threat of disruptions at the Strait of Hormuz, a key supply route for India's 5.5 million barrels-per-day crude needs. But with high costs, geopolitical uncertainties, and the ongoing energy transition, the question is: can India build the reserves fast enough to weather the next crisis?
India's Aircraft Accident Investigation Bureau is probing the Air India AI-171 crash, having recovered both black boxes, a flight data recorder, and a cockpit voice recorder. These devices hold critical clues, recording flight dynamics and cockpit conversations. However, reports suggest that one black box may be sent overseas for deeper analysis, raising questions about the capabilities of India's new ₹ 9 crore black box lab. Though civil aviation minister K. Rammohan Naidu denied shortcomings, experts say India's investigation framework lacks alignment with global standards.
For years, stocks of small and medium enterprises were known for one-way doors—easy to buy, hard to sell—thanks to thin liquidity. Many investors preferred betting on private companies over getting stuck in a trade they couldn't exit. But that's changing. A post-pandemic wave of risk-hungry investors and regulatory nudges has breathed fresh life into SME listings. What was once an overlooked niche is now drawing serious interest. But is this a sustainable boom or just another frothy detour in India's equity story?
DLF raked in ₹ 21,223 crore in FY25 residential sales, driven by blockbuster Gurugram launches. Yet, it's guiding a cautious ₹ 20,000-22,000 crore for FY26, even as its rivals are more bullish. The company is playing a long game: zero debt in its development arm, ₹ 1 trillion worth of launches over five years, and expansion into Mumbai and Goa. Its rental arm, DCCDL, is also booming with malls, offices, and data centres. While DLF's NCR-heavy bets pose concentration risk, its land bank, pricing power, and delivery record give the company an edge.
Liquor stocks are soaring even as the broader FMCG sector struggles. Radico Khaitan and United Spirits lead the rally, riding a cocktail of low input costs, booming premium sales, and favourable policies like the India-UK free trade agreement. India's ₹ 40 billion liquor market is now the fastest-growing globally, with luxury consumption accelerating. Yet, regulatory uncertainty looms large; every Indian state is a market unto itself. High valuations (some over 100x earnings) make these stocks pricey. But analysts remain bullish, betting on brand strength, premiumization, and rising per capita consumption.
A 22-year-old family feud at Sun TV has resurfaced, with former Union telecom minister Dayanidhi Maran legally challenging brother Kalanithi Maran's 75% stake in the ₹ 23,000-crore media empire. Dayanidhi alleges Kalanithi acquired control of Sun TV via questionable transactions between 2003 and 2005, including undervalued share allotments. Sun TV calls it a family matter with no business impact. Legal experts say Dayanidhi may face hurdles due to the time lapse, but claims of fraud could keep the case alive. Read this explainer to get the complete picture.
Amid a fragile Israel-Iran ceasefire, India is readying a Plan B to protect its oil supply from potential Strait of Hormuz disruptions. State-run refiners are in talks to use Saudi and UAE pipelines while boosting US imports and tapping global reserves. Over 30% of India's import bill comes from crude oil, and supply shocks can impact economic growth. Though supplies seem secured, pricing remains a concern. Freight and insurance costs are rising, but officials say India is prepared to navigate any escalation, thanks to strategic ties and diversified sourcing.
India's plan to locally produce rare earth magnets has hit major roadblocks even as China tightens exports. With IREL Ltd operating at half capacity and no domestic magnet manufacturing, automakers are vulnerable. Import duties, raw material shortages, and lack of tech access further delay progress. Though the government is considering subsidies and new sourcing options, officials admit there's no quick fix. For now, India must depend on China or ramp up recycling and strategic imports to secure EV and defence supply chains.
That's all for this week, I hope you have a pleasant weekend!
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