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is to be believed, on the output of sugarcane and the proportion of it that the sugar mills are able to get in competition with the gur and khandsari industries. This picture of gur, khandsaii and sugar manufacturers in hitter competition for sugarcane is patently unconvincing. If indeed there were such coumetition among the three major users of cane, one would not expect to see very sharp fluctuations in the acreage under cane and in the output of cane on account of fluctuations in cane prices. The government, the sugar industry and the rich farmers arc unanimous that the sugar industry cannot withstand competition from gur and khandsari unless it pays high enough prices for cane. However, in the same breath it is also argued that the payment of relatively low prices for cane by the sugar industry results in shift of acreage from sugarcane to other crops. If gur and khandsari offer a ready alternative use for cane, then the price paid by the sugar industry should not be expected to have such a marked impact on the acreage under sugarcane.