An overview of application of system dynamics modeling for analysis of Indian sugar industry

Sugar cane and sugar sectors are quite important segments of the Indian agriculture sector with great potential for impacting rural development. Sugar industry has proved itself to be a nucleus of rural development, particularly in its surrounding areas and has carved for itself a very significant role in the national economy. The performance of Indian sugar industry depends on national and international factors which include sugar price, consumption pattern, government policies or support programme to name a few. The paper discusses the present national and international scenario of sugar industry and their impact on the performance. SD is an approach, which takes a causal view of reality, and uses quantitative means to investigate the dynamic behavior of socio-technical systems and their response to policy. This paper presents a conceptual framework for application of system dynamics modeling for analysis of Indian sugar industry. It also describes how system dynamics (SD) can aid as an effective management tool to resolve the complex dynamic issues of sugar industry management.