Direct investments and foreign ventures are expected to come towards the global sugar industry, said India's top sugar producer Balrampur Chini. According to the company, the deregulation of the sector was the catalyst for an expected inflow of placements especially in India.

Dr. Vivek Sarogi, spokesperson of Balrampur Chini, said "The sugar sector will attract a number of large and global institutions and trading houses like agri funds and contra funds."

Global agricultural financing in the current market have been shying away from India. An analsyst said that India's invisibility to foreign sugar investors was expected. There was just simply no reason to invest in India, commented the analyst.

He continued to say that every aspect of agriculture in the country was controlled tightly be the government. There are other choices that provide a better investment atmosphere, he explained.

Due to this, the Indian government initiated moves to increase investors' confidence towards India. The country removed a 10% levy in the sector. This gave sugar plants more flexibility to market all of their output.