In a first taste of change of regime, many cooperative sugar mills have been denied pre season loan by Maharashtra State Cooperative Bank. Readers can recall that the State govt had sacked the Board following adverse report by NABARD.
Cooperative sugar mills take loan in pre season for the upkeep and maintenance of their factories but the changed mood due to bad performance by MSCB has reduced the size of the loan cake.
About Rs 500 crores was disburded last year but this year it has been reduced to Rs 350 crores.
Deputy Chief Minister Ajit Pawar who is said to be controlling the levers of power in MSCB, had crossed sword with Congress on the issue of sacking of Board.
Changed regime has begun to tell upon the sugar cooperatives as the new management has decided to offer loan to them only who have paid the old loan.
