MUMBAI (Commodity Online): Utter Pradesh sugar cane farmers, India’s largest sugar producing state, have threatened to burn their produce if they were not paid in tandem with rising sugar prices.

Uttar Pradesh police has blocked the supply of imported raw sugar to mills in order to quall the protesting sugar cane farmers. According to the state government official, the farmers demanded a higher minimum support price for the cane as the production was affected badly by the drought.

Farmers insisted that they would not sell cane at lower rate instead burn if not paid better prices, he added.

Prices of sugar have been soared rapidly in the domestic markets due to the shortages of the commodity. However, the government is considering more imports to boost domestic supply.

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Prices in India have risen by more than 40% since March and are currently around Rs 32,000 per tonne. Meanwhile, the police blockage is expected to cause for further prices rise in the domestic market.

The Uttar Pradesh government has announced a state-set 2009-10 sugar cane price of Rs 165 per 100 kilograms, while farmers want Rs 280. Uttar Pradesh produced 4.05 million tonnes of sugar in the year ended September 30, out of India's estimated output of 15 million tonnes.