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Sugar is one of the most important source of energy required by the people in Iran.A large part of its domestic production is prouduced in Khorasan province.Khorasan is the main sugar beet Producing Province in the countzy.
The purpose of the present study is to investigate the factors which have significant effects on supply of sugar beet and make use of revealed results to indicate an appropriate policy to increase the supply of sugar beet in Khorasan .A time sereis date was used to estimate a partial supply response model suggested by Nerlove.
The results of supply function analysis indicated that factors such as price of cotton as a substitutien product and cultivated area were significant at 1 percent level. But in the short run sugar beet producers in khorasan do not responed significantly to price of sugar beet.