The Maharashtra government on Wednesday agreed to guarantee a Rs 1,800-crore loan required by the Maharashtra State Cooperative Cotton Growers Marketing Federation (MSCCGMF).
The state cabinet gave its nod to a proposal providing government guarantee for the loan required by the federation, an official statement said.
The government guarantee will be for the Rs 1,800- crore loan the federation will take from Bank of India at 7.75 per cent per annum interest rate for ensuring timely payments to farmers on purchase of cotton in 2019-20 season, it said.
The statement said 60,000 quintal to 80,000 quintal cotton is being purchase daily on an average in the state, a leading producer of the commodity.
At this rate, the federation is expected to purchase 30 lakh to 35 lakh quintal cotton from farmers in the current season and for this a sum of Rs 1,800 are required, it said.
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