"Mawana and Modi have already approached the Board for Industrial and Financial Reconstruction (BIFR) and they will find it hard to clear the cane arrears," Indian Sugar Mills Association (ISMA) Director General Avinash Verma told PTI.
"Even if they sell their assets, they will not be able to clear the entire dues to sugarcane growers," he said.
Stating that cane arrears in Uttar Pradesh are being cleared fast, Verma said that total dues have come down to below Rs 3,000 crore so far.
"If calculated on the basis of the cane price fixed by the Centre, total cane arrears in the state would be only Rs 500 crore. Barring 3-4 mills, most of them have paid 125-140 per cent of the Fair and Remunerative Price (FRP)," he said.
Sugar mills in Uttar Pradesh, the country's second biggest producing state, have threatened to shut down their operations in the new season 2014-15 starting October if the state government continues to fix the cane price arbitrarily.