Maharashtra cooperative mills seek release of pledged sugar held with PSBs

Indian mills expect sudden spike in global sugar prices to persist due to drought in Brazil, giving India a fair chance to achieve 5 million tonnes of sugar export quota this year

Co-operative sugar mills in Maharashtra have written to Finance Minister Arun Jaitley seeking his intervention for the release of collateral sugar held with the public sector banks (PSBs).

The move is aimed to boost exports from the state which were stuck due to the difference in subsidy payment. While banks, including PSB, state central co-operative banks and district central co-operative banks have sought the price differential between the current realisation and free on board (FOB) price of Rs 11 a kg, which is equivalent to the subsidy amount, mills want lenders to release the collateral to boost exports and also