The article deals with the reasons behind present problems of the sugar industry in Poland. Nowadays, the sugar business is faced with numerous problems. Despite the restructuring process the sugar industry is still fragmented. There are still many plants in the sugar industry which use outdated and energy-intensive technologies in production. The author makes an attempt to account for the reasons behind the economic backwardness of the Polish sugar industry. In recent years, the sugar industry in Poland has had to cope with the problems connected with the privatization and restructuring processes. Most urgent problems of the Polish sugar business have their origins in the conditions of the development of sugar industry and result from various processes that took place in the past. An analysis of those conditions is vital for explaining why the sugar industry in Poland is economically backward compared to the sugar industry in Western Europe. Solving of this problem presents a very serious challenge for the branch of industry in question.