The correct answer is Both 1 and 2.

• 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 those in North India.
• The production of sugar depends upon the production of sugarcane and it fluctuates with the fluctuations in the production of sugarcane.

• The sugar industry is the second largest agro-based industry in India.
• Sugar mills can be set up only in the sugarcane-producing areas.
• Sugarcane gets dry soon after harvesting. It can neither be stored nor kept for a long period of time. 
• The transportation cost of sugarcane is high.