what could be the probable reason for the increase in sugar mills in south India
Answers
Answer:
(i) The sucrose content of sugarcane grown is higher in Peninsular India. ... (ii) The crushing season is longer in Peninsular India, as it does not get very hot in the summer compared to North India. (iii) Sugar industries are mostly cooperatives and. cooperatives are more successful in the Southern states.
The profitability of the sugar mills located in the southern region of India, especially those in Tamil Nadu and South Karnataka, is likely to be adversely impacted in FY18 due to an increase in the cost of production.
Rating agency Icra estimates lower cane availability in the region following the past three years of continuous drought. Reduced availability of cane for crushing may raise cane costs, that is the fair and remunerative price (FRP) for sugarcane, from October onwards in 2017.