Managing Quantity, Quality, and Timing in Indian Cane Sugar Production : Ex Post Marketing Permits or Ex Ante Production Contracts?

dc.creatorPatlolla, Sandhyarani
dc.creatorGoodhue, Rachael E.
dc.creatorSexton, Richard J.
dc.date2014-08-15T14:38:34Z
dc.date2014-08-15T14:38:34Z
dc.date2014-07
dc.date.accessioned2026-07-01T00:53:24Z
dc.descriptionPrivate sugar processors in Andhra Pradesh, India use an unusual form of vertical coordination. They issue 'permits' to selected cane growers a few weeks before harvest. These permits specify the amount of cane to be delivered during a narrow time period. This article investigates why processors create uncertainty among farmers using ex post permits instead of ex ante production contracts. The theoretical model predicts that ex post permits are more profitable than ex ante contracts or the spot market under existing government regulations in the sugar sector, which include a binding price floor for cane and the designation of a reserve area for each processor wherein it has a legal monopsony for cane. The use of ex post permits creates competition among farmers to increase cane quality, which increases processor profits and farmer costs. Empirical analysis supports the hypothesis that farmers operating in private factory areas have higher unit production costs than do their counterparts who patronize cooperatives.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2014/07/19878480/managing-quantity-quality-timing-indian-cane-sugar-production-ex-post-marketing-permits-or-ex-ante-production-contracts
dc.identifierhttps://hdl.handle.net/10986/19348
dc.identifierhttps://doi.org/10.1596/1813-9450-6975
dc.identifier.urihttp://hdl.handle.net/123456789/412516
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank Group, Washington, DC
dc.relationPolicy Research Working Paper;No. 6975
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGRIBUSINESS
dc.subjectAGRICULTURAL ECONOMICS
dc.subjectAGRICULTURAL LABOR
dc.subjectAGRICULTURAL LABORERS
dc.subjectAGRICULTURAL MARKETING
dc.subjectAGRICULTURAL PROBLEMS
dc.subjectAGRICULTURE
dc.subjectCANE SUGAR
dc.subjectCOMMERCIAL CROPS
dc.subjectCONTRACT FARMING
dc.subjectCOOPERATIVES
dc.subjectCROP
dc.subjectCROPPING
dc.subjectCROPPING SEASONS
dc.subjectCROPS
dc.subjectCULTIVATION
dc.subjectDISEASES
dc.subjectDISTRIBUTION OF LAND
dc.subjectFAMILY MEMBERS
dc.subjectFAO
dc.subjectFARM
dc.subjectFARM LABOR
dc.subjectFARM SECTOR
dc.subjectFARM SIZE
dc.subjectFARMER
dc.subjectFARMER MEMBERS
dc.subjectFARMERS
dc.subjectFARMS
dc.subjectFERTILIZER
dc.subjectFLOOR PRICE
dc.subjectFOOD MARKETS
dc.subjectFOOD POLICY
dc.subjectFOOD POLICY RESEARCH
dc.subjectFOOD PROCESSING
dc.subjectFOOD SUPPLY
dc.subjectHARVESTING
dc.subjectHAZARD
dc.subjectINTEGRATION
dc.subjectINTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
dc.subjectLAND PREPARATION
dc.subjectLIVESTOCK
dc.subjectLONG-TERM CONTRACTS
dc.subjectMAJORITY OF FARMERS
dc.subjectMILLS
dc.subjectPACKING
dc.subjectPESTICIDES
dc.subjectPESTS
dc.subjectPLANTING
dc.subjectPRICE PREMIUM
dc.subjectPRODUCE
dc.subjectPRODUCT QUALITY
dc.subjectPRODUCTION COST
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION METHODS
dc.subjectREGIONAL DUMMIES
dc.subjectREGIONAL EFFECTS
dc.subjectRICE CULTIVATION
dc.subjectRICE PRODUCTION
dc.subjectRURAL DEVELOPMENT
dc.subjectRURAL POPULATION
dc.subjectSEED
dc.subjectSMALL FARMERS
dc.subjectSOIL QUALITY
dc.subjectSUCROSE
dc.subjectSUGAR CANE
dc.subjectSUGAR FACTORIES
dc.subjectSUGAR INDUSTRY
dc.subjectSUGARCANE
dc.subjectSWEETENERS
dc.subjectTRANSFER OF TECHNOLOGY
dc.subjectUNREGULATED MARKETS
dc.subjectVILLAGE LEADERS
dc.subjectVILLAGE LEVEL
dc.subjectYIELDS
dc.titleManaging Quantity, Quality, and Timing in Indian Cane Sugar Production : Ex Post Marketing Permits or Ex Ante Production Contracts?

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