Rs 360 cr package to bail out coop sugar mills

To be disbursed in a few days

Karnataka has worked out a Rs 360-crore financial package to bail out the loss-making sugar mills in the co-operative in the state.

The state government on Wednesday held consultations with representatives of the sugar mills.

"The National Cooperative Development Corporation will be approached for a loan of Rs 360 crore. It will be disbursed among the ailing cooperative sugar mills as working capital in the next few days," Karnataka's sugar minister S A Ravindranath told reporters here.

Last year, the state produced 1.70 lakh metric tonnes of sugar. This year, it is expected to touch a figure of 2.20 lakh metric tonnes owing to a good monsoon. There are 53 sugar mills in the state and the state stands fourth in terms of sugar production.

"There was a plea from the cooperative sugar mills to announce a financial package owing to bumper sugarcane crop. Without working capital, the mills are unable to crush cane," the minister added.