However, even while India is the world's second largest producer of sugar after Brazil, the country does not have a long-term export strategy for the commodity, unlike other producers. It is good the Indian Sugar Exim Corporation, the industry's trade arm, in spite of the highly irregular exports ordained by the government, is able to bounce back on the world market time and again.
What is not exactly pleasant for the industry is to bear the brunt of non-payment of cane bills, like when the government, fearing the domestic market might play truant, banned sugar exports in June 2006. This development, unfortunately, coincided with high sugar prices in the world market. India could never use the situation.
The government took its time to realise a wrong decision had been made before removing the export ban in January 2007. By then, the damage had been done
