The Maharashtra state cabinet recently agreed to guarantee a Rs. 1,800-crore loan required by the Maharashtra State Cooperative Cotton Growers Marketing Federation (MSCCGMF). The guarantee will be for the loan the federation will take from Bank of India at an annual interest rate of 7.75 per cent for ensuring timely payments to farmers on purchase of cotton in the 2019-20 season.
Between 60,000 quintals and 80,000 quintals of cotton is being purchased daily on an average in the state, a leading producer of the commodity, an official statement said.
At this rate, the federation is expected to purchase 30 lakh to 35 lakh quintals of cotton from farmers in the current season and for this a sum of Rs. 1,800 is required, a news agency reported citing the statement.
