MSC Bank revises pledge loan amount for sweets
The Maharashtra State Cooperative Bank (MSC) – the central body of all cooperative banks in the state, revised loan amounts to sugar factories on pledged stocks of sugar from 90% to 85%. The bank also revised the cost of converting 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 sweets.
Jaiprakash Dandegaonkar, Chairman of Maharashtra State Cooperative Sugar Factories Federation (MSCSFF) wrote
to the bank requesting a reconsideration.
Vidyadhar Anaskar, Chairman of the Board of Directors of MSC Bank, said: âThe state sugar factories were in
distress last year due to drought and flooding. The State Cabinet had asked the bank to
increase the pledged loan amount and, therefore, the bank revised the loan amount from 85% to 90% of the
pledged shares. âIn the previous season, sugar prices fluctuated, forcing the bank to revise sugar valuations from time to time. “
“As the Center has set the minimum support price (MSP) for sugar at Rs 3,100 per quintal, prices are stable. The bank has therefore decided to restore the pledge loan amounts to 85%,” Anaskar said.
Sanjay Khatal, MD, MSCSFF, said sugar sales are low due to high inventory and a bumper harvest is expected this season. The millers will not be able to pay the fair and remunerative price (FRP) to farmers that has been increased by the Center, he said.
According to the millers, if the pledge loan amounts to 85% of the total inventory, the cooperative banks will provide the millers
Rs 2,635 per quintal as the loan amount. The maximum amount available to factories for the payment of the PRF will then be
around Rs 1,700 percent.