Knee-jerk reaction: Sugar sector is crying out for real reforms

Distress and anger among farmers are believed to be among the reasons for the Bharatiya Janata Party's defeat in a recent bypoll in Kairana, in Uttar Pradesh's sugar belt

The story of the sugar industry in India has been anything but sweet. The country received a bitter reminder of this on Wednesday after the Union Cabinet approved a Rs 70 billion bailout package for the sector, which will offer only temporary palliatives without addressing the root cause of the sugar economy’s deteriorating fortunes: High output that is well in excess of domestic needs. Between October 2017 and September 2018 — referred to as the sugar season of 2018 — production is expected to go up 48 per cent to reach 31.5 million tonnes. It is projected to go up