UP cooperative banks' sugar sector exposure stands at Rs 5,700 crore

Total advances included soft loans under Central, state schemes

Cooperative banks in Uttar Pradesh had an exposure of Rs 5,747 crore to the sugar sector during the 2018-19 crushing season.

The amount includes about Rs 4,492-crore worth of regular loans to sugar mills and Rs 1,255 crore in soft loans provided under the different central and state government schemes.

According to UP cooperative minister Mukut Bihari Verma, the cooperative banks had actively contributed towards the payment of cane farmers’ arrears by providing loans to mills.

The cooperative banks have been facing rough times and there is even a proposal to merge all these lenders into a single banking entity