Jaiprakash Dandegaonkar, chairman of the Maharashtra State Cooperative Sugar Factories Federation, has urged NABARD to allow cooperative sugar mills to raise finance from the banks by restructuring their existing loans so they could start their operations in the current crushing season. reports Indian Express.
Of the 74 cooperative sugar mills which bank with the Maharashtra State Cooperative Bank (MSC), 37 mills have reported negative NDR. Similarly, 13 mills which bank with the District Central Cooperative Banks (DCCBs) have negative NDR and thus will not be able to raise fresh capital for the next crushing season.
The corona crisis has not allowed mills to sell their sugar stock and this has denied them capital by selling their stock. The central government has asked cooperative banks to give 10 per cent more working capital for units to help them overcome their financial difficulties.