Maharashtra government to grant guarantee loans raised by sugar cooperatives
As these sugar cooperatives often default on loans guaranteed by the state government, the government decided in March not to give any collateral to loans raised by sugar cooperatives with negative net worth that have to pay.
Earlier last week, that decision was changed and the state cabinet approved proposals to give guarantees to sugar factories run by an NCP deputy from Pandharpur for his Rs 50 crore loan and congressman Sangram Thopte de Bhor of Rs 12 crore for his sugar cooperative.
Now the state sugar commissioner has been asked to review the proposals sent by the sugar cooperatives as a special case due to the lockdown and send them to cabinet. The decision not to give the guarantee came after the Supreme Court ordered the state government to pay Rs 697 crore to the Maharashtra State Cooperative Bank to guarantee loans to 63 sugar cooperatives.
Now Osmanabad and
An NCP minister who wished to remain anonymous said: “The prices of sugar on the international market are currently falling while
In this context, if the state government had not taken the decision to grant guarantee loans raised by the sugar cooperatives, many of them would not have been able to start the crushing season in October. and that would ultimately have impacted the sugar cane producers, he added.