Question

Why sugar industry are ideally suited to the cooperative sector?

Answer 1

The sugar industry is seasonal in nature and so ideally suited to the cooperative sector. For the entire year the farmers are engaged in producing sugarcane as it is an annual crop. When the crop is reaped, ten farmers pool together their resources, set up mills within the sugar cane producing areas and produce sugar. The seasonal nature of the sugar industry is combated by setting up cooperative where farmers share the profit and losses.