The sugar production in Uttar Pradesh has exceeded 4.5 million tonnes (MT), which is 13 per cent higher compared to similar period last year.
The state is targeting sugar output of 6.5 MT for this season against 5.9 MT during 2010-11.
Meanwhile, sugarcane farmers had so far been paid Rs 8,115 crore out of total dues of Rs 10,195 crore, which puts the payment percentage under 80 per cent.
Sugar mills get 14 days time for cane payments. Some weeks back, private mills had been making advance payments to farmers to get more cane. Currently, the cane dues payment percentage stands at under 80 per cent.
A sugarcane department official told Business Standard on Thursday that the government was contemplating issuing recovery certificates (RCs) against mills showing laxity in clearing dues.
So far, 125-odd mills had crushed 52 MT of sugarcane, which is about 16 per cent more than what had been crushed by this time last year.
According to Indian Sugar Mills Association (ISMA), pan-India sugar production stands at over 16 MT till February 15 compared to 14 MT in the corresponding period during 2010-11. ISMA maintained that domestic sugar production would be 26 MT in current season.
On November 8, 2011, UP had hiked cane State Advised Price (SAP) by almost 20 per cent. The price of early variety of cane was increased Rs 40/quintal to Rs 250/quintal.
SAP of common variety, which accounts for over 60 per cent of total cane production, was increased by Rs 35/quintal to Rs 240/quintal. Early variety and rejected variety of cane account for about 20 per cent of production each. The price of rejected variety was fixed at Rs 235/quintal.
The government had said the hike would result in sugarcane payments of over Rs 15,000 crore to farmers during 2011-12 crushing season against Rs 13,000 crore last year much to the consternation of millers.