Sugar is one of the most regulated agricultural commodities in india, with government support embedded at every stage of its value addition. The sugar sector, therefore, offers an intriguing case study of how a single market distortion can lead to a cascade of distortionary policies, ultimately creating a domestic sugar market that often diverges from global reference prices. Both observed and estimated costs—actual and implied—of government interventions in the sugar and cane industry are substantial and have been rising over time. When these financial burdens are considered alongside the high environmental and social costs, it becomes evident that there is a pressing need for a policy course correction. This report aims to examine these issues in greater detail and explore potential avenues for reform.

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