49 mills out of 172 in Maharashtra were refused soft loans by banks that have approved loans of Rs 2,559.02 crore till the end of June, reports Indian Express.
Worried about the inability of sugar mills to pay cane farmers fair and remunerative prices, the govt. of India announced a soft loan scheme of Rs 10,540-crore to enable banks to lend to the mills.
However, the scheme could not work to the extent it should as the mills had exhausted their credit limits as well as their sectoral exposure limit for sugar.
Of the sanctioned Rs 2,559 crore, mills received Rs 2,510.64 crore that did help them make payments to growers.
Sources watching sugar industry say the 49 mills that could not avail themselves of soft loans may use traditional sources of credit to tide them over their financial crisis.
