In a major step towards modernizing sugarcane cultivation, the Maharashtra State Cooperative Bank (MSC Bank) has announced a pioneering initiative to promote the use of Artificial Intelligence (AI) in farming.
Under a special pilot project, the bank will extend concessional loans at an interest rate of just 6% to cooperative sugar mills, enabling them to support AI-based practices benefiting one lakh farmers across Maharashtra.
Speaking to Indian Cooperative, MSC Bank’s Administrative Board Chairman Vidyadhar Anaskar said, “A tripartite agreement between MSC Bank, an AI service provider, and the respective sugar factories has been executed under this pilot project. The initiative is being launched on a cost-to-cost basis, with no profit margin for the bank.”
“Sugar factories, acting as intermediaries, will be responsible for distributing loans to farmers and managing repayments. The loans will be fully secured, with recoveries deducted during the Fair and Remunerative Price (FRP) payout cycle,” he added.
As part of the project, each farmer will receive financial support of Rs 25,000 per hectare, including a subsidy of Rs 6,750 per hectare contributed by the sugar mills.
To meet the funding requirements, MSC Bank has earmarked Rs 500 crore for direct lending to the sugar mills under the pilot project. If the pilot phase proves successful, district central cooperative banks (DCCBs) will also be roped in for further implementation.
Anaskar informed that three cooperative sugar factories from Pune, Satara, and Kolhapur districts have been shortlisted for the pilot phase.
Speaking at a program at the Vasantdada Sugar Institute (VSI) on Monday, Anaskar reiterated MSC Bank’s commitment to empowering farmers with modern technology.
