Sugarcane farmers in the State are in for tough times as their dues have soared to Rs 12,000 crore as on May 11.
With another bumper sugar production expected in 2018-19, there will again be a surplus which will get added to the current surplus of sugar stock in the country. Fears are that farmers may not get their cane price payments quickly and arrears may only rise further next season.
Though during 2017-18, UP has crushed and produced record cane and sugar respectively, the low market price of sugar has given a blow to the sugar industry and has resulted in mounting arrears.
The 119 sugar mills in operation during the current cane crushing season have so far paid 63.48 per cent of their dues. Of the total 119 mills, 56 mills have closed their crushing.
UP Sugar Mills Association (UPSMA) office bearers said in lucknow on Saturday that the total dues of cane farmers were close to Rs 12,000 crore.
The 94 private mills have so far paid Rs 10,727.37 crore to farmers. So far the industry including private, cooperative and public sector, have together paid Rs 20, 609 crore to the farmers.
The 24 cooperative mills too owe Rs 1107.09 crore and one corporation mill has to pay Rs 21.17 crore. The arrears of the last season are about Rs 60 crore.
Meanwhile, UP has maintained the second spot in sugar production in the country after Maharashtra by producing 1.163 croe MT with a recovery percentage of 10.88 by crushing 10688.83 lakh quintal of sugarcane in season so far.