The geographical conditions are more suitable in the peninsular region than in North India for the cultivation of sugarcane. The crushing season is longer and mills are near the plantation in the peninsular region and so there is no loss of sucrose. In North India is seasonal in character as sugarcane is available only at the time of harvest and the crushing season is short. So, there is increase in cost of production. The sugar industry is better organised in the peninsular region as the mills are better managed in the cooperative sector, factories are nearer the centre of large consumption. This lowers the transport cost and overall prices. In North India, there are great distances between the factories and the fields which causes increase in the cost of production. The outmoded and worn-out machinery of North Indian mills lead to lo;w milling efficiency and wastages. The mills in peninsular India are new, efficient and very large.