MUMBAI: Sugar production in Maharashtra has touched 101 lakh tons, the second highest in the state's history, reports Priyanka Kakodkar . With a month still left for the sugar season to end, officials say production could set a new record, and may even overtake highest producer UP."At this rate, we estimate production may cross the historic high of 105 lakh tons in 2014-15," said state sugar commissioner Sambhaji Kadu Patil.The rise in production has seen prices drop from Rs 3,600 per quintal last year to Rs 2,900 now.Currently, the state is the second highest sugar producer in the country after Uttar Pradesh. Officials say the state may even surpass UP this year. Sugar production in the state is 140% higher than in 2016-17 where production was impacted by the drought.The area under water-guzzling sugarcane has increased by 2.7 lakh hectares over the last year. The cane area grew from 6.3 lakh hectares in 2016-17 to 9 lakh hectares in 2017-18.Kolhapur and Solapur regions led in sugar production, though the latter is an arid area. Productivity also increased from 75 tons per hectare in 2016-17 to 100 tons in 2017-18. However, the rise in production has led to a dip in sugar prices from 3,600 per quintal last year to 2,900 now.As a result, sugar factories say they are finding it difficult to pay cane farmers the Fair and Remunerative Price (FRP) set by the Central government at 2,550 per quintal. The pending payments to farmers have ballooned to 2,227 crore.Over time, Maharashtra has lost its traditional markets in the North and the North-east to UP which has a locational advantage.For the full report, log on to www.timesofindia.comThe state's domestic consumption is only 24 lakh tons and it currently has pending stocks of 79 lakh tons.The Centre has stepped in with an increased import duty on sugar from 50% to 100% and also scrapped export duty on sugar which was earlier at 20%. The Centre has also set minimum indicative export quotas for mills in a bid to push sugar exports.