System Dynamics Analysis of Sugarcane Supply Chain in Indian Sugar Industry

Presently, there is high turbulence in the Indian sugar industry. The misalignment of the incentives of major stakeholders is leading the industry to a vicious downslide. Hence, it becomes important to study the current situation, its dynamics and future trends under different circumstances. In this paper, we have established the relationship between different variables and parameters using the systems dynamic approach to model the dynamics of sustainability of the sugar industry in Uttar Pradesh (UP), India. Our study revealed that to achieve sustainable development, the sugar industry must improve on resource utilization, operating cost, better supply chain coordination and transparent information flow. Based on our analysis, operational and policy level recommendations have been suggested to help the industry achieve sustainable development and improve performance.