The sugar industry is described as ideally suited to the cooperative sector, whereas jute textile mills are p…

Question

The sugar industry is described as ideally suited to the cooperative sector, whereas jute textile mills are predominantly run as private or public sector enterprises. What specific characteristic of sugarcane cultivation and processing makes the cooperative model most appropriate for the sugar industry? Why does that same characteristic not apply to jute textile mills in the same way?

Accepted Answer

## Model Answer The key characteristic making sugar industry ideal for cooperatives is that **sugarcane is a bulky raw material whose sucrose content reduces during haulage**. It must be processed quickly and locally, making farmer-growers and millers interdependent — a naturally cooperative arrangement. Additionally, the industry is **seasonal**, so shared ownership distributes costs and risks efficiently among farmers. Jute mills, by contrast, depend on **cheap labour, water transport, banking and port infrastructure** concentrated around Hugli — advantages best exploited by organised private/public capital, not seasonal farmer-growers needing local processing. *Source: Manufacturing Industries, Sugar Industry & Jute Textiles sections, Chapter 6* --- ## Explanation The examiner expects two things: (1) identify the **specific characteristic** — bulky raw material + sucrose loss + seasonal nature — and link it to cooperative logic; (2) contrast with jute, which relies on centralised i…

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