AEC 102 DEMANDS

OF SUGAR

By Aman kumar
2022004010
CONSUMPTION OF SUGAR IMPORT OF SUGAR BY

. DIFFERENT COUNTRIES
 DEMAND CURVE

• Increases in sugar production due to higher prices

require significant long-term capital investment.
When prices fall, production continues at full capacity
in order to spread the fixed costs, hence sugar supply
tends to be inelastic with respect to price in the short-
term.
 CASE STUDY
• The sugar industry is in the middle of a severe
financial crisis. It’s getting harder and harder for the
industry to keep up with payments to cane growers
because of its persistent cash flow issues. Sugar
prices continue to fall on a monthly basis. A
government incentive to increase raw sugar
production and exports was announced, but prices
have fallen even further.
 P R O B L E M S A N D C H A L L E N G E S FA C E D

• The sugar sector plays a crucial role for India’s economy, but faces challenges in terms of stagnating
production, price regulations, unstable sugarcane market and water scarcity.
• Primary challenge faced is the seasonal nature of the industry, as sugarcane is only available during
harvest time. This leads to a significant gap between sugar factories and the fields, resulting in a loss of
sucrose if the sugarcane is not crushed within 24 hours.
THANK YOU