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The sugarcane crushing season for 2014-15 has not come to an end but about 20 per cent of the sugar mills in Uttar Pradesh have already ceased operations.
The mills usually start closing down for the season when the sugarcane allocated to these are exhausted.
Of the 118 mills in Uttar Pradesh that had participated in crushing this season, at least 24 have already closed down. As days advance, more mills would join the league. Most units are likely to be shut by April 15-20.
However, a few mills are expected to crush till the end of the current month, a sugar industry official told Business Standard.
So far, the state mills have collectively produced nearly six million tonnes (mt) of sugar after crushing over 62 mt of cane.
The state mills could possibly produce about 6.5 mt, when the crushing season rounds off completely.
The mills had paid Rs 8,196 crore against the payable dues of Rs 13,183 crore to the cane farmers, which puts the arrears at Rs 4,987 crore.
Though the cane price in the state stands at Rs 280 a quintal, the state government had relaxed the payment structure and mills were allowed to pay upfront at the rate of Rs 240 a quintal.
Most of the arrears are with the private sector, which makes up for 94 units in the state. The remaining 23 and one unit belong to the cooperative sector and Uttar Pradesh State Sugar Corporation Limited, respectively.
Allahabad High Court will on Tuesday hear a case pertaining to the failure of the private mills to pay the arrears for 2013-14 crushing season.
Uttar Pradesh is India's largest and second largest sugarcane and sugar producer, respectively.
