Even as cane arrears hit a record Rs 21,836 crore until April 15, the share of Uttar Pradesh — the traditional trouble spot of the cane crisis — in the total dues has come down to 48% this year, compared with that of 60-70% at any time during the crushing season in recent years. This is because other key producers, including Maharashtra and Karnataka, are also facing a crisis in payment this marketing year through September due to an unprecedented slide in sugar rates below cane costs. Maharashtra now accounts for 16% of the country’s cane arrears and Karnataka 15%.

Cane arrears rose R1,737 crore in the fornight through April 15, as the slide in sugar prices to around six-year lows hurt mills’ ability to clear the dues.

Last week, food minister Ram Vilas Paswan had told Parliament that the Centre would take “appropriate decision at appropriate time” to help mills clear the cane arrears in excess of Rs 21,000 crore. Subsequently, the government decided to take a series of measures to stop imports — including raising the customs duty on sugar to 40% from 25% —and scrap an excise duty on ethanol, meant for blending with petrol, to improve mills’ cash flow. A decision on the industry’s demand for building a strategic sugar reserve by the govenrment to the tune of 10% of the country’s production is still pending.