According to the latest estimates, the sugar factories in the country have to pay a sum of Rs 12,683 crore to farmers for sugar cane supplies for the 2012-13 crushing season.

The data also shows that the total payable amount is a whooping Rs. 48,585 crore in the country. Sugar firms have said that the poor international trends and lower demand from the future commodities market have delayed payments to the farmers. Lower demand has affected the ability of the sugar producers to pay the farmers in the country.

A new report form the Indian Sugar Mills Association (ISMA) said that the situation is likely to get worse as the country will carry forward a stock of 65 lakh tonnes sugar from the previous crushing season and 20 lakh tonne sugar is expected as surplus from the 2012-13 crushing season. The estimates are as on April 22and payments made by the firms after that date are not included.

"Sugar factories are facing a crisis. There is no demand for sugar in the domestic or international market. The future too is not promising as the current international price quoted for December 2013 is about Rs 28,000 per tonne, which is not lucrative. Factories are not keen on exports and there is stagnation in the domestic market," ISMA's spokesperson said.