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MSC Bank revises pledge loan amount for sugar mills

The financial institution has additionally revised conversion value of sugar from Rs 250 per quintal to Rs 200 per quintal and short-term loan recoveries from Rs 200 per quintal to Rs 250 per quintal for sugarmills.

Maharashtra State Cooperative  (MSC) Bank –the nodal bodyforall cooperative banks within the state, has revised loan quantities given to sugar mills on the pledged sugar shares from 90% to 85%. The financial institution has additionally revised conversion value of sugar from Rs 250 per quintal to Rs 200 per quintal and short-term loan recoveries from Rs 200 per quintal to Rs 250 per quintal for sugarmills.

Jaiprakash Dandegaonkar, chairman, Maharashtra State Cooperative Sugar Factories Federation (MSCSFF)has written
to the financial institution urging reconsideration.



Vidyadhar Anaskar, chairman of the board of directors, MSC Bank,mentioned:“Sugar mills in the state were in financial
distress last year due to drought and flood conditions. The state Cabinet had come forward urging the bank to
increase the pledge loan amount, and therefore, the bank revised the loan amount from usual 85% to 90% of the
pledged stocks.” “During the previous season, sugar prices were fluctuating as a result of which the bank was forced to revise sugar valuations from time to time.”

“As the Centre has fixed the minimum support price (MSP) of sugar at Rs 3,100 per quintal, prices are stable.The bank has, therefore, decided to restore the pledge loan amounts to 85%,”Anaskar mentioned.

Sanjay Khatal, MD, MSCSFF, mentioned sugar gross sales are low due to a excessive stock, and a bumper crop is predicted this season. Millers shall be unable to pay the truthful and remunerative worth (FRP) to farmers which has been hiked by the Centre,he mentioned.

According to millers, if the pledge loan quantities to 85% of the full shares,cooperative banks will present millers
Rs 2,635 per quintal because the loan amount. The most amount accessible to mills for FRP fee will then be
round Rs 1,700 perquintal.

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