| || || Kodituwakku, Dinesh|
| || || An economic study of potential production-promoting sugarcane and sugar policies in Sri Lanka : some recommendations in the light of Indian and Thai policy lessons|
Institution: University of the South Pacific.
Subject: Sugarcane -- Economic aspects -- Sri Lanka, Sugar trade -- Government policy -- Sri Lanka
Call No.: pac SB 229 .S72 K632 2013
Copyright:Under 10% of this thesis may be copied without the authors written permission
Abstract: This study was undertaken to review the existing production-promoting sugarcane and sugar policies in Sri Lanka and recommend policy for increasing the production of sugar in the country. Even though the country has sugar industry operating for nearly six decades, her sugar production is insignificant compared to domestic demand, which has been costing the country considerable amounts of foreign exchange every year. In this regard, it is pertinent to mention that the Sri Lankan government has set a target for increasing the domestic sugar production up to 40 per cent of the domestic demand by the year 2020. In order to help the Sri Lankan government to formulate appropriate production promoting policies, this study reviewed the sugarcane and sugar sector policies of India and Thailand over a period of 2005 to 2010. Both India and Thailand have policies to regulate different aspects of sugarcane and sugar production including the price and trade. They effectively used their policy instruments for the development of the sugar industry. An analysis of the factors affecting the sugar production in Sri Lanka indicated that the retail prices of sugar were insignificant in influencing the production of sugar and sugarcane and the cane area harvested. Since the present sugarcane pricing system in the country does not represent the sugar price, the sugar production therefore was not price responsive to the sugarcane production which was in short supply. Further, the analysis of the profitability of the sugarcane crop revealed that it was relatively competitive in the irrigated region of the country than that in the rain-fed region. For the development of the sugar industry like in India and Thailand, Sri Lanka also needs a regulatory mechanism for the price of sugarcane as well as sugar. Policy interventions are also required in the areas of development of technology on sugarcane cultivation and sugar manufacture and provision of infrastructure facilities.