The production of sugarcane per hectare is higher in Peninsular India due to environmental factors as well as the cooperatives . Hence, statement 1 is correct . The sugarcane crop grows well in the tropical climate of south India. The sucrose content is higher in the tropical variety of sugarcane grown in the south due to the availability of moisture . Hence,statement 2 is correct. The crushing season in south India is longer than in north India. In south India, most of the mills have modern machinery . Mills are located near the Sugarcane crops . Most of the mills in Peninsular India are in the cooperative sector, where profit maximization is not the sole objective. Cooperatives in South India are better organized than that of North India. The production of sugar depends upon the production of sugarcane and it fluctuates with the fluctuations in the production of sugarcane.