NEW DELHI: Crushing of sugarcane started on a small scale in Uttar Pradesh on Monday, a day before chief minister Akhilesh Yadav is scheduled to meet private millers for the second time in three days. The industry and the Centre are hopeful of a resolution to avoid sugar scarcity after spiraling onion and vegetable prices has battered the common man.

The Centre feels the logjam must end soon considering UP is the second largest sugar producing state after Maharashtra. "If the logjam continues and crushing delays, obviously, there will be some impact on total sugar production," food secretary Sudhir Kumar was quoted as saying by agencies. Kumar said the opening stock of sugar was 85 lakh tonnes, enough to meet the demand for five months.

Indian Sugar Mills Association (ISMA) estimates the country's total sugar production at 250 lakh tonnes for the 2013-14 marketing year. UP contributes about 75-80 lakh tonnes annually.

Top food ministry officials said there won't be any impact on sugar availability or price even if the UP impasse lingers for some more time. "Solution will be found. Farmers want to sell their produce and millers are there to carry out their business. While state government has to play a bigger role, Centre may extend some financial help," said a government official on condition of anonymity.

The logjam in UP over sugar production continues after the state government announced state advisory price (SAP) of Rs 280 per quintal for sugarcane. Millers said they could not pay more than Rs 225. They have demanded that the state pay the differential amount to farmers.

Another major demand of the sugar industry is that sugarcane price should be determined as per the Rangarajan Committee formula - at 75% of the sugar price realization by the mills. Millers said without this formula the arbitrariness in sugarcane prices may continue, causing further losses to the industry.

Industry sources said that some of those started crushing on Tuesday are semi government ones and a few more which can follow suit are owned by some industrialists who don't want a face off with the Samajwadi Party government.

Meanwhile, the Prime Minister is also holding a meeting with top officials and minister of Maharashtra government and representatives of farmers and industry.

In Maharashtra, the face off between industry and farmers is also on the pricing of sugarcane. While farmers are demanding the cane price to be fixed at Rs 300-350 per quintal industry representatives are non-committal on higher cane payment since the market price of sugar had dipped to Rs 2,635-2,655 a quintal. The industry wants the Central and state governments to tackle the sugar price.