Even as the private sugar mills are yet to clear over Rs 5,200 crore cane due, the Samajwadi Party Government has ordered commencement of the new crushing season from Monday asking mills to make all preparations.

The state cane development department will start reserving cane areas for UP's 123 sugar mills, mainly in the private sector, from Monday though most of the private mills have refused to attend the meeting till their problems of financial crises were addressed by the government.

The private mill owners have already informed the government last month that they would prefer to close their units if their problems are not solved.

The new season for sugar starts from October 1 while the  crushing will start from November 15.

The development gains importance in the wake of a standoff between UP government and private millers who had refused to attend crucial cane reservation meeting citing their financially weak position.

UP Sugar Mills Association (UPSMA) officials told reporters here on Sunday that  the Association do no play any role in the meeting for reserving the cane areas. "The mills will decide on its own whether to participate in the meeting or not," the official said while adding that the private mills are trying to clear the dues to the tune of Rs 5200 crores of the last season very soon.

UP millers were defaulting on a payment of around Rs 5,200 crore, despite UP government giving a sop of around Rs 2,000 crore to bail out the financially ailing industry hit by a sharp dip in prices of raw sugar. "The amount granted by UP government is being disbursed to farmers," said the UPSMA official.

Besides, UP sugar industry hopes to receive a grant of around Rs 1,000 crore from Centre too.

In spite of the sops, UP millers say these measures are not enough to pull the industry out of the red. The industry is in no position to pay at the rate of Rs 230 per quintal Centre's fixed remuneration price (FRP), the millers say.

However UP Cane commissioner  Ajay Kumar Singh said that he has called the millers and if they don't attend the meeting then government will fix the areas for them. He claimed that the state government has done its bit by allocating substantial grant to the millers. "Now, it is their turn to get things in the right place and start operating," the Commissioner said.

In the crushing season of 2014-15, UP government has announced a state advisory price (SAP) of Rs 28 per quintal. Of this, the millers were asked to pay Rs 240 upfront while remaining Rs 40 per quintal may be paid at a later stage.