AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Sugar industry is seasonal because sugarcane must be crushed soon after harvest to prevent loss of sucrose content. Mills operate only a few months a year, making it difficult for private owners to earn profit year-round.
Under cooperative ownership, farmers themselves are the members and owners. They can pool resources, share the short crushing season's workload, and ensure that the mills remain economically viable despite operating for limited periods. Profits benefit the farmer-members directly, making it a mutually beneficial and practical model.
Source: Manufacturing Industries, Agro-based Industries (Sugar Industry)
The key link to establish is: seasonal nature → low profitability for private owners → cooperative model works better because farmers share costs, risks, and profits. The textbook explicitly states the industry "is ideally suited to the cooperative sector" due to its seasonal nature. Examiners expect you to connect seasonality → cooperative advantage → farmer benefit in a logical chain.