If unable to repay loans, sugar mills are not likely to operate next year: Hasan Mushriff

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Kolhapur District Central Cooperative bank (KDCC) has granted the loan to 11 sugar mills from the district. Out of these eight mills have not been able to sell sugar in the last three months. If they fail to repay loans, the bank will face a financial crisis. Under this situation, the mills are not likely to take up cane crushing for next crushing season, said KDCC chairman Hasan Mushriff.

“Our bank had lent soft loan worth Rs 128 crore to the 11 sugar mills. Eight mills that are unable to sell sugar owe Rs 125 to 150 crore to the bank. If the situation continues, the mills will not be able to take up crushing next year,” he said.

“This year 328 lakh tonne sugar was produced in the country, and 107 lakh tonne sugar was surplus from last year. Total available sugar is 435 lakh tonne sugar. The domestic requirement is 235 lakh tonne, and around 32 lakh tonne sugar would be exported. Around 110 lakh tonne sugar will be surplus in the country,” he said .

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