The Maharashtra State Cooperative Bank (MSCB), the apex cooperative bank, will increase the amount of its pledge loan for the current crushing season to help sugar mills pay cane growers their fair and remunerative price (FRP).
As per the decision taken at the highest level of the govt, the MSC and other district cooperative banks would disburse Rs 600 crore this year, reports Indian Express.
The apex bank officials are quoted as saying due to increase in valuation of sugar, the bank would increase the loan amount from Rs 1,275 to Rs 1,400 per tonne, officials said.
While the crushing season has already started, confusion still remains among the mills about the payment of FRP. The last season had seen many mills failing to pay the FRP to farmers. As of now the arrears stood at Rs 650 crore.
