Pune: In a move seen as beneficial for sugar mills ahead of the upcoming assembly elections, Rs 1,898 crore worth loans has sanctioned to 13 cooperative sugar factories. The loan, provided by the National Cooperative Development Corporation (NCDC), aims to revive struggling mills.
The loan is for eight years, including a moratorium period of two years on repayment of principal amount. However, there is no moratorium on payment of interest. The loan is sanctioned with the guarantee of Maharashtra govt.
As pre reports, the state government and cooperative sugar mills have been instructed to use this loan first to repay the term loans taken from banks, and then for capital expenditure and the planned season. The Maharashtra government and the Regional Directorate in Pune have also been asked to monitor the proper utilization of the loan.
महाराष्ट्रातील १३ साखर कारखान्यांच्या १ हजार ८९८ कोटींच्या कर्ज प्रस्तावास मंजुरी !
महाराष्ट्रातील १३ साखर कारखान्यांच्या १ हजार ८९८ कोटी रुपयांच्या कर्ज प्रस्तावास केंद्रीय सहकार विभागाच्या अंतर्गत असणाऱ्या राष्ट्रीय सहकार विकास निगमने मान्यता दिली आहे. राज्य मंत्रिमंडळाच्या… pic.twitter.com/Y2OsarF3ZP
— Murlidhar Mohol (@mohol_murlidhar) July 2, 2024
Speaking to ChiniMandi about this decision, senior sugar industry analyst P.G. Medhe said, “In the last five years since 2019, sugarcane FRP has been increased from ₹ 2750 to ₹ 3450 per tonne. But MSP of sugar has not been increased to that extent. So the factories have to bear the loss of ₹500 to 600 per tonnes, take loans and pay the FRP. Factories’ accounts have gone into NPA due to negative net worth/NDRs due to increasing debts due to the loss of crores. In view of this situation, this decision of the central government has to be said to be a step taken to boost the sugar industry. However, it is not limited to the case of 13 factories but it is towards the factories to bring the industry as a whole out of financial difficulties. All existing loans are to be restructured for a period of 10 years and a moratorium period of two years is required. Apart from this, it is necessary to announce the Interest Subsidy Scheme as before. Moreover, as the next season is approaching, it is necessary to think about increasing the MSP Sugar upto ₹ 42/- Kg and proportionate rates of ethanol be revised accordingly giving priority.”
