Manon's Econ Blog

Sugar in India

Posted on: October 14, 2009

sugarcubes

 

Maharashtra in India is the most dominant sugar-producing state, but the heavy monsoon in October 5th this year damaged an important part of the cultures. This leads to a decrease in the supply of sugar -less land can be farmed, by consequent the quantity farmed decreased. As we can see on the graph on the bottom, if the supply curves shifts to the left, the price will go up, and the quantity demanded will decrease. Since part of Maharashtra’s economy is based on the exportation of sugar, the economy will experience a deficit -less money earned from exportation, people’s income will decrease- and the population relying on the production of sugar will loose an important amount of money, leading to a decrease in the GDP.Sugar

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