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Problems and Prospects of Sugar Industry in India

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Author Info
B K S Prakash Rao
Bh Venkateswara Rao
Abstract

Sugar is the second largest agro-based industry in India. The industry provides employment to about two million skilled and semi-skilled workers besides those who are employed in ancillary activities, mostly from rural areas. Though the industry contributes a lot to the socioeconomic development of the nation, it is plagued with a number of problems such as cyclical fluctuations, high support prices payable to farmers, lack of adequate working capital, partial decontrol and the uncertain export outlook. Despite the problems, the industry has good growth potential due to steady increase in sugar consumption, retail boom and diversification into areas such as power generation and production of ethanol. In addition to this, strong possibilities exist for counter trade, if the Government designs and develops sugar industry-oriented policies. With this background, an attempt has been made to examine the problems and prospects of sugar industry in India.

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Publisher Info
Article provided by Icfai Press in its journal The Icfai University Journal of Industrial Economics.

Volume (Year): II (2005)
Issue (Month): 4 (November)
Pages: 58-66
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Handle: RePEc:icf:icfjie:v:02:y:2005:i:4:p:58-66

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