Sugar mills owed Rs 6,548 crore to cane growers till January of the current 2011-12 marketing year that started in October last year.
According to the data placed by the Food Minister KV Thomas in Lok Sabha today, the sugarcane arrears as on January 31 of the 2011-12 marketing year (October-September) stood at Rs 6,548 crore, of which Rs 3,148 crore pertained to Uttar Pradesh -- the country's second largest sugar producing state.
Karnataka millers had to pay Rs 1,307 crore till January of 2011-12 marketing year.
The data showed that the arrears to cane growers is much higher than it was in the year-ago period. In 2010-11 season till January, mills owed only Rs 127.2 crore in arrear to sugarcane growers.
As per the Sugarcane (Control) Order, 1966, mills should make payment to farmers within 14 days of delivery, failing which interest at the rate of 15% per annum on the amount due needs to be paid for delayed period.
Sugar output of India, the world's second largest producer and biggest consumer, is expected to be 25 million tonne in the 2011-12, higher than the annual demand of 22 million tonne.