Even though the sugar industry has registered 15 per cent increase in production during the current marketing year, sugar mills are reluctant to pay Rs 20,000 crore arrears to cane famers across the country. Mill owners claim that in contrary to the production, the price of sugar has plummeted in the domestic market. During a meeting with ministers of sugar-growing states, Union Consumer Affairs Minister Ram Vilas Paswan expressed his concern over pending sugarcane arrears. “All possible efforts must be made to facilitate the payment of arrears by the state governments. The Centre is conscious about financial problems being faced by the sugar industry, hence we have already taken a number of initiatives to help the industry and facilitate the payment of arrears,” Paswan said. He also urged states to take all possible steps to ensure the payment of arrears. Union Agriculture Minister Radha Mohan Singh was also present. He stressed that assistance given to sugar mills should be provided to farmers directly. “The Centre will consider taking initiatives to encourage sugar exports. The ministry will also propose to increase sugar import duty by 40 per cent to stop its import.” Commenting on the proposed hike in import duty on sugar, the Indian Sugar Mills Association said it would be helpful only in the long run. The industry body demanded that the government should buy three million tonnes of sugar to address the problem. “The Centre should sanction the request of industry as well as demand of sugarcane farmers of buying three million tonnes of sugar. This will give around Rs 9,000 crore of cash flow to the industry, which can go directly to the farmers,” ISMA said. The industry body feared that prices might fall further and cane price arrears would continue to get delayed, if the government does not purchase the surplus sugar.