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4. Why the Indian sugar policy makes more India domestic political than free market economic sense
6. Conclusion
The price of sugarcane is fixed either by the Central Government or by the State
Government
The conduct of the India sugar industry is governed by ‘The Sugarcane Control
Order’ and ‘The Sugar Control Order’
The Government of India strictly regulates the international trade of sugar, both
imports and exports from India, often changing its policies at short notice
The pricing and domestic trade of sugar bi-products are highly regulated by the
Government of India too, often preventing inter-state India domestic sugar trade
The policy framework governing the India domestic sugar industry
Increased
Lower sugar duty on
prices and exports &
realizations for allow
the India imports
domestic Place stock
industry Canalize limits on
exports traders and
millers
Increase in area
under
Increased
sugarcane
sugarcane
cultivation and
payment Highly
centrifugal
arrears Lower the
sugar The disconnect export duty, regulated, Lower the
production duty on
between subsidize bureaucratic imports &
sugarcane prices exports &
ban imports sugar trade ban exports
and sugar prices policy
in India
Create a
buffer stock
Canalize
& restrict
Higher sugar Decline in area imports
domestic
prices leading under sugar sales
to ba etter pace sugarcane and Increased
of sugarcane sugar duty on
payments production imports &
allow
exports
How the Indian sugar policy makes more India domestic political sense
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The disconnect between farmer prices for cane and sugar prices for mills
India sugarcane payment arrears
Key features of the immediate India domestic sugar policy
The FRP was revised higher, while the SAP was unchanged in the major sugarcane
growing state of Uttar Pradesh
The price for ethanol produced from B heavy molasses and ethanol produced directly from
sugarcane juice was revised higher
The India sugar balance sheet solves rationally for India domestic politics, and
irrationally for free market economics
Conclusion
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