"We just started working on it. Because quantum of sugar is annually getting accumulated. In the last four years it (the accumulation of sugar) has been quite substantial," she told reporters here.
Pointing out that the accumulation of sugar would make it difficult for the mills to pay the farmers, she said, due to the accumulation of sugar, the situation has become "much critical."
"This is something we are trying to work on. It is very much at the early stages. It is not as if we have already come up with a solution," she said.
Sitharaman was here to take part in the conference on 'Policy and Political Support for Achieving the Zero Hunger Challenges', organised by M S Swaminathan Research Foundation, here.
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Earlier at the conference, she said, there was a need to address issue of distortion on production of some agriculture commodities.
"As a result, India's basket of agriculture goods is imbalanced," she said.
Referring to rubber produced in India, she said it was of superior quality and the government under the 12th Plan has started encouraging rubber production in non-traditional areas like Tirupura and North East India.
Through such initiative, the total quantum of Indian rubber would increase and it is expected to meet the demand of the domestic rubber industry, she added.