Abstract

The recent sugar scarcity and the consequent high price for sugar variously described as the "Sugar Muddle", "Sugar Racket" etc., has brought the sugar industry prominently into public attention and criticism. The main target of criticism has been the high price of Indian sugar compared to sugar produced in other countries. The Industrialists say that it is mainly due to the high price fixed for the cane as the the cane price accounts for nearly 60% of the sugar price and there is no possibility of reducing the sugar price unless the cane price is reduced. The champions of the ryots, however, say that the cane price cannot be reduced without risk of the area under cane being reduced, because of the better return a ryot gets on alternative crops. So the whole question boils down to this, as to, how is it possible to reduce the cane price without reducing the return the ryot gets. There is only one answer to it, to increase the yield per acre and the sugar content of the cane.

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