The Indian sugar industry – a complex, yet increasingly prominent force on the world sugar scene

The Indian sugar industry started in the early 1930s. Up to date it is controlled by the Indian Central and the State Governments. Only 60% of the produced sugar can be sold on the open market, the other 40% is procured by the government at a subsidized price. In the 1960s the government made a decision, that expansions of sugar factories must be limited and new factories must come up. Thus, though India is the biggest sugar producing country in the world, the factories are often very small and have fairly old technology. By loosening governmental control and an increasing participation of the private sector in both the cultivation and processing of sugarcane the Indian sugar industry should be able to become more efficient and strengthen its presence in the world market.