Export Performance and Competitiveness of India's Sugar

This paper has studied the competitiveness of India's sugar in terms of trade, policy and export performance based on time series data for the period 1989–90 to 2012–13. The study has revealed that India is fourth largest exporter of sugar today and sugar export increased from 2 thousand tonnes to 2794 thousand tons during the study period with compound annual growth rates of 21.83 per cent in quantity, 28.65 per cent in value and 5.60 per cent in unit value. The export destinations for sugar have varied widely over time, these being UAE, Sri Lanka and Malaysia in 2012–13. The study has revealed that potential for expanding sugar production in India exists and can be fully exploited if adjustments are introduced to ensure a market-driven relationship between sugar and sugarcane prices. Higher domestic sugar prices than international sugar prices suggest the significant policy changes are needed in India. The study has also suggested to divert export of sugar from the low pricepaying countries to the countries where price realization is comparatively more.