Abstract
If the problems faced by sugar cane growers are effectively and efficiently addressed, a big chunk of the problems faced by the sugar industry as a whole will have been addressed. Unfortunately some of the said problems remain unaddressed till date although remedies have always been at hand. Yet some problems remain unaddressed since finding a solution acceptable to all stakeholders of the sugar industry is not easy. Be that as it may, nothing prevents the government from helping the cane growers improve their bottom lines by accessing new strains of cane or for that matter from exposing the growers to superior cane harvesting technology. The researcher also concludes that cane pricing reforms cannot drag on for years. The reforms have to be finalised promptly and implemented effectively. Otherwise, the reforms will defeat the very purpose they are supposed to serve. Until the reforms are fully implemented, the government and the regulator will have to periodically initiate stop-gap measures perhaps to be replaced by another set of reforms. Completion of the sugar cane-pricing reforms will address the cyclical downturn in sugar prices. The most vital reform has to be the computation of sugar cane price in line with a revenue-linked formula. Announcement of state-advised price or SAP should precede the crushing operations. Unfortunately, the opposite happens most of the time, giving rise to avoidable uncertainties. Often Karnataka’s state-advised price (SAP) is far ahead of the fair and remunerative price (FRP) prescribed by the government of India. If the SAP differs widely from the FRP, one of the two must be true: either SAP has been computed erroneously or FRP has been computed unfairly. Given that FRP is worked out by a better equipped team – better equipped in terms of the inputs required for computing the price, it is obvious that the government of Karnataka has gone overboard in pricing the sugar cane in order to remain politically correct. Further, its stipulation that the price be paid upfront rubs salt into the sugar millers’ wound. A slight difference between SAP and FRP is understandable but a conspicuous difference is indicative of biased pricing on the part of the state government. It is necessary to reduce the idling sugar inventory by moderating sugar production without at the same time affecting the livelihood of the sugar cane growers. This can be ensured by actively promoting and incentivising the export of raw sugar.
Keywords: Corporate Level Strategies, Apple Inc., Vision, Mission, Diversification, Mergers & Acquisition, iPods, Beats, Strategic Management.
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