State govt to be guarantor for 1,500cr loan of cotton body

MUMBAI: The Maharashtra Cabinet, on Wednesday, decided to stand guarantor for a Rs 1,500 crore bank loan taken by the State Co-operative Cotton Growers Marketing Federation to pay farmers for procuring their produce at minimum support price (MSP).

The federation has taken a loan of Rs 1,500 crore from Bank of Maharashtra at 6.35 per cent interest rate annually.

The state government has also waived the guarantee fee to be charged from the federation for the loan, a statement from the Chief Ministers Office ( CMO) said. -