Sugar production in the country declined 10.63% to 16.86 million tonne in the October-February period of the ongoing 2013-14 marketing year on lower output in most states, including Maharashtra and Uttar Pradesh, industry body ISMA said.

Also, sugarcane arrears to growers have touched Rs 14,000 crore as on February 28, of which Rs 10,000 crore remains unpaid in Uttar Pradesh, it said in a statement.

Mills had manufactured 18.84 million tonne sugar in the same period of the last marketing year (October-September).

According to ISMA, "The gap in sugar production has narrowed down further from 13% to 11% over the last fortnight. 460 mills are still crushing sugarcane, which is 23 more than last year."

Sugar production in Maharashtra, the country's top producer, fell to 5.71 million tonne till February of this year from 6.57 million tonne in the year-ago period.

ISMA said mills in the state have recovered 11.1% of sugar, down from 11.15% of recovery in the year-ago period. But overall sugar recovery is expected to be 11.41% in 2013-14, better than last year, it added.

Sugar production in Uttar Pradesh — the country's second biggest producer — also declined to 4.27 million tonne from 5 million tonnes in the review period.

However, recovery of sugar was slightly higher at 8.99% as against 8.94% in the same period last year.