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Sugar Co-operatives in Maharashtra: A Political Economy Perspective

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  • Mala Lalvani

Abstract

The origins of the powerful sugar lobby in Maharashtra date back to the 1950s. Post Independence, cooperatives formed an integral part of the Congress vision of 'rural development with local initiative'. A 'special' status was accorded to the sugar cooperatives and the government assumed the role of a mentor by acting as a stakeholder, guarantor and regulator. Persistence of the maze of regulations instituted five decades ago, despite its stated rationale being thwarted, suggests that it is maintained by entrenched vested interests. This paper calls for a fresh start with minimal regulations. The teething problems and initial market failures that may occur cannot be worse than the continuing saga of government failure.

Suggested Citation

  • Mala Lalvani, 2008. "Sugar Co-operatives in Maharashtra: A Political Economy Perspective," Journal of Development Studies, Taylor & Francis Journals, vol. 44(10), pages 1474-1505.
    • Handle: RePEc:taf:jdevst:v:44:y:2008:i:10:p:1474-1505
    DOI: 10.1080/00220380802265108
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    References listed on IDEAS

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    1. Sanghamitra Das & Dilip Mookherjee, 2004. "Ownership form and contractual ineficiency: Comparing performance of cooperatives and private factories in the Indian sugar industry," Discussion Papers 04-06, Indian Statistical Institute, Delhi.
    2. Nannestad, Peter & Paldam, Martin, 1994. "The VP-Function: A Survey of the Literature on Vote and Popularity Functions after 25 Years," Public Choice, Springer, vol. 79(3-4), pages 213-245, June.
    3. Srijit Mishra & Manoj Panda, 2005. "Growth and poverty in Maharashtra," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2006-001, Indira Gandhi Institute of Development Research, Mumbai, India.
    4. Gulati, Ashok & Narayanan, Sudha, 2003. "The Subsidy Syndrome in Indian Agriculture," OUP Catalogue, Oxford University Press, number 9780195662061, Decembrie.
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    2. Sandhyarani Patlolla & Rachael E. Goodhue & Richard J. Sexton, 2015. "Managing Quantity, Quality, and Timing in Indian Cane Sugar Production: Ex Post Marketing Permits or Ex Ante Production Contracts?," The World Bank Economic Review, World Bank, vol. 29(3), pages 606-630.
    3. Abraham, Mathew & Verteramo Chiu, Leslie & Joshi, Ekta & Ali Ilahi, Muhammad & Pingali, Prabhu, 2022. "Aggregation models and small farm commercialization – A scoping review of the global literature," Food Policy, Elsevier, vol. 110(C).

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