Sugar millers to meet CM Devendra Fadnavis over soft loan issue

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Sugar mills in Maharashtra are in pressure as they are unable to clear the pending sugarcane dues. 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 are finding it difficult to avail the scheme.

According to reports, Maharashtra State Cooperative Bank (MSC) did not approve loans of 27 sugar mills that have reported negative NDRs (Net Disposable Resources). Now to seek relief, millers have decided to approach Chief Minister Devendra Fadnavis over the issue.

Maharashtra State Cooperative Sugar Factories Federation (MSCSFF) managing director Sanjay Khatal said, “During a meeting of the federation of cooperative millers in the state held on Thursday, the millers have decided to approach the state CM, sugar commissioner and also top authorities of the Maharashtra State Cooperative Bank.”

The government had announced a soft loan of up to Rs 10,540 crore to the sugar industry to help mills clear mounting arrears to cane growers, a move that would cost exchequer up to Rs 1,054 crore as interest subsidy. The Centre will bear the interest subvention cost at the rate of 7-10 per cent to the extent of Rs 553 crore to Rs 1,054 crore for one year.

On May 17, 2019, Maharashtra State Cooperative Sugar Factories Federation (MSCSFF) sent a letter to Department of Food and Public Distribution (DFPD) requesting an extension for disbursement of soft loan by two months up to 31st July 2019 as mills are unable to get the soft loan.

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