Sugarcane (Saccharum sp.) is one of the most significant commercial crops in the world due to its strategic position, extensive uses in every nation’s everyday life, and industrial uses for sustaining economic and nutritional needs. The present study, an economic analysis of factors affecting sugarcane production and policy implications in major sugarcane-producing states of India, centers on the objective to analyse the variables influencing sugarcane production. A secondary time series data for 14 states namely: Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Bihar, Gujarat, Haryana, Punjab, Andhra Pradesh, Madhya Pradesh, Uttarakhand, Telangana, Chhattisgarh, and Jharkhand, for the period 1998-99 to 2018-19 have been utilized for the present study. The variables considered in this study were area, yield, rainfall, and price (FRP). The findings imply that there was a significant linear relationship between the area and sugarcane production. The linear association of yield with production was positive but weaker than the area. Rainfall and FRP (Fair and Remunerative Prices) had a weakly positive association with production,as observed there was the insensitivity of sugarcane production to FRP and rainfall thus, efforts should be made to increase price responsiveness by reducing the sugarcane cane reservation area.

Highlights

• There was a significant linear relationship between the area and sugarcane production.
• The linear association of yield with production was positive but weaker than the area.