Barriers to entry are almost non-existent as the only barrier that may restrict someone from planting sugarcane is either due to the climate of the person staying or the government requiring people to own a license to plant it.The ease of entry thus makes the number of sellers in the market to be very vast since farmers who are planting other crops can easily change their production to planting sugarcane.
Buying of sugarcane from any farmer or market is usually the same as the sugarcane provided do not have a distinct difference in taste or look.
There is a high level of information in the market for sugarcane due to the vast number of sellers. Buyers can simply compare the prices of sugarcane with the other sellers and access whether the price reflects the economic fundamentals or not.
Sugarcane can be converted to other resources which make it a rather versatile and valuable crop to grow. With the ever-increasing demand for it, this lucrative industry will constantly attract people to the industry with many buyers importing it for further uses.
For this market structure, the farmers in this industry will break even and only earn zero profit in the long run. This is due to how easy it is for the farmers to leave and enter the market. In the long run, farmers are able to leave the market when the price of sugarcane is less than the average variable cost to produce sugarcane and come back to the industry when the price of sugarcane is more than the average variable cost. This allows the farmers to minimise loss from planting sugarcane but however losing the surplus due to such a structure.