Sugar mills facing difficulty to avail soft loan scheme

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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.

Earlier, District Cooperative Banks had denied in approving the loan, and now Maharashtra State Cooperative Bank too followed suit. One of the reasons for the denial of loan is Exhaustion of Sugar Mill’s Borrowing Limit.

Next sugar season will commence soon, but yet sugar mills have not cleared the pending dues of sugarcane farmers. However, NABARD has directed all the banks of the state to sanction loans to the sugar mills before May 31.

Till May 2, 122 sugar mills of the state had to pay Rs 3238 crores, but banks gave Rs 2280 crores loans to 72 mills. That is why many sugar mills failed to clear pending cane dues.

Earlier, Maharashtra State Cooperative Sugar Factories Federation has requested the NABARD chairman to review the problems for suitable remedial measures as a matter of policy intervention.

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