Based upon primary data, this study carried out for the Punjab state indicated that mutual interdependences of the chain partners coupled with the announcement of SMP/SAP for cane have facilitated chain coordination. This ensures timely cane supplies to sugar mills as well as cane disposal and payments to farmers. Besides the cyclical nature of industry that particularly during its downward phase adversely affects cane supplies, its production has not kept pace with capacity expansion. So a continuous upward revision in SAPs has diverted cane supplies to the industry from the gur industry. And, private mills owing to comparatively greater market orientation have steamed ahead of state owned cooperative mills which are beset with several concerns.
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