Sugar price determination in India: an econometric analysis.

India's sugar sector faces several price and non-price controls that distort prices and hinder the further development of the sector. This paper assesses the impact of policy interventions and technological change on sugar prices. It employs the autoregressive distributed lag (ARDL) model to estimate the interrelationship between sugar price and its determinants in the long run and finds that, in the long run, sugar price is significantly influenced by the recovery rate, beginning stock, jaggery price and per capita income. Further, 86% of the disturbance in the short run in sugar price is corrected within a year.