Sugar co-operatives may not get bank loans for cane crushing

PUNE: The number of sugar co-operatives participating in the 2013-14 crushing season in Maharashtra, the top sugar producer, is likely to decline due to financial difficulties.

A considerable number of mills may find it tough to get bank loans due to their negative net worth caused by low offtake and subdued sugar prices for most part of 2012-13. In a meeting on Tuesday, the state government decided to begin crushing operations from November 1.

The sugar year is from October 1 to September 30. September is crucial for cane’s growth as weather conditions in this month will decide the final tonnage when cane is crushed.

The state has estimated that sugar mills in the state will crush 640 lakh tonne cane and produce 73 lakh tonne sugar. Vijaysinha Mohite Patil, chairman, Maharashtra State Co-operative Sugar Factories Federation, said the Federation has requested the government to stand guarantee for bank loans gievn to sugar co-ops.