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Sugar mills in Maharashtra got big respite after State Cooperative Bank agreed to approve the soft loan to them.
The government had introduced various measures, including a soft loan scheme for sugar mills to help them clear mounting cane arrears. But, millers in Maharashtra were finding it difficult to avail the scheme as Maharashtra State Cooperative Bank and as well as District Cooperative Banks had earlier denied approving the loan citing various reasons.
Banks have sanctioned a loan of Rs 689 crore 2 lakh 79 thousand to 42 sugar mills. This will aid the factories to clear the pending cane arrears. The Central government will bear the interest for one year on this loan.
The surplus production of sugar during the current sugar season has resulted in depressed sugar prices. Following which sugar mills failed to accumulate money to pay cane arrears. Later they requested the Centre for soft loans to help them in clearing the cane dues.