Behind the sugar price drop: Exports, imports and a non-factor called ethanol

Less than a week after the government opened a duty-free window to import one million tonnes, sugar prices have seen a significant drop. Not surprising. What is surprising though is that, just six months ago, India was trying to export more sugar. Both the export and import decisions, the government says, have nothing to do with Ethanol. Perhaps not; but the sequence of events points to a larger balancing act. Cane is now part of a system that has to protect consumer prices, pay farmers, keep sugar mills viable, and also supply an E20 fuel programme.