With payments to sugarcane farmers piling up, the Andhra Pradesh Government has announced a loan of Rs 37.87 crore to five co-operative sugar factories in the State.
“The open market rate for sugar fell down to Rs 2,550 a quintal this year as against Rs 3,800 in 2009-10. As a result of this, some sugar factories are not able to clear the dues. With farmers expecting payments to allow them invest for the ensuing kharif season, we have decided to extend loans to the factories that failed to pay out,” Ms J. Geeta Reddy, Minister for Major Industries and Sugar, said here in a statement.
The factories are: Anakapalle Cooperative Sugar Factory (loan sanctioned Rs 6.10 crore); Thandava factory (Rs 3.73 crore); Kovur factory (Rs 7.82 crore); Chittoor factory (Rs 15.83 crore) and Sri Venkateswara factory (Rs 4.38 crore).