- Obsolete machinery
- Low productivity/ hectare
- Low crushing season
- Policies issues:
- Highly political sensitive commodity
- Delinking of sugarcane and sugar prices
- State advisory prices are very high
- Restriction on the use of bagasse and molasses. Energy generation cannot be sell out to others.
- Low per capita consumption of sugars.
- High input cost involved in sugarcane crop.
- Small and uneconomic size of mill.
- Prolonged frost in north destroy the crop
Reason for better performance:
- Tropical climate: High sucrose content
- High yield/ hectare
- Long crushing season
- Cooperative are better managed
- Proximity to the ports and size of mill