Why do we have repeated sugar shortages? Is it smuggling? Is it hoarding? Or is it something even deeper? PIDE has stimulated an academic debate by taking a closer look at the recent sugar crisis during a webinar held on ??00, 2020. The purpose of the webinar was to assess the economic incentives or disincentives generated from over-regulation of the industry. The case for regulation of sugarcane industry has been built on the premise that both buyers and sellers need protection from collusive behaviour. Sugarcane is non-storable and non-transportable, so Mandatory Crushing Laws and support prices are used to protect farmers’ interests. A Licence Raj has been put in place to protect millers by securing their rights of access to sugarcane in their designated area.