The National Cooperative Development Corporation (NCDC), a statutory corporation under the Ministry of Cooperation, has announced a significant reduction in interest rates for term loans and working capital loans for cooperative sugar mills. The NCDC promotes and finances cooperative societies across various sectors. New interest rates are applicable on fresh sanctions and spillover cases.
According to the NCDC’s notification, the revised rates are set at 8.5% for term loans and 8% for working capital loans. These revised interest rates have been introduced under the Central Sector Scheme - Grant-in-Aid for Strengthening Cooperative Sugar Mills (CSMs). This initiative is part of a series of proactive measures by the Union Cooperation Ministry aimed at enhancing the sustainability and growth of cooperative sugar factories nationwide.
By lowering borrowing costs, the NCDC aims to provide financial support to Cooperative Sugar Mills (CSMs), which benefit nearly 5 crore sugarcane farmers. This move is expected to improve the operational efficiency of sugar cooperatives and give a significant boost to India’s sugar industry. Cooperative sugar factories, integral to rural economies, play a crucial role in supporting farmers and driving socio-economic development.
While the NCDC’s interest rate reduction is a positive step towards empowering cooperative sugar factories, the sugar industry continues to face pressing challenges. Industry stakeholders are urgently advocating for an increase in the Minimum Sale Price (MSP) of sugar and a hike in ethanol prices. These challenges underline the need for swift and comprehensive policy interventions.
