UP sugar mills to raise Rs 3,650 cr from banks to pay cane farmers

In coming season, the state's sugar output is pegged at 12.3 million tonnes

Cash-starved cooperative sugar mills in Uttar Pradesh will raise nearly Rs 3,650 crore from the banks in the coming 2020-21 sugarcane crushing season to pay farmers for the procurement of the cash crop.

Currently, there are 24 state controlled cooperative sugar mills in UP. The projected loans/cash-credit limit of Rs 3,650 crore to be taken by the cooperative plants this season is 13 per cent higher compared to the corresponding amount of Rs 3,221 crore in the previous crushing cycle (2019-20).

Meanwhile, the state government will stand as guarantor for the cash-credit facility totalling Rs 3,650 crore to be availed of by