: Sugarcane growers of Ganjam district in Odisha will have to pay extra interest on agricultural loans as the Aska Cooperative Sugar Industry Limited (ACSIL) has delayed payments for procured sugarcane.
A delegation of Ganjam District Sugarcane Growers’ Association (GDSGA) led by its general secretary Samir Pardhan met the president of the ACSIL Bipin Patra. The sugarcane growers demanded the ACSIL to pay extra interest on agricultural loans that the farmers would have to pay up on their agricultural loans because of the delay in payments.
Speaking to The Hindu , vice president of GDSGA, Narayan Jena said around 4,000 sugarcane farmers of Ganjam district had provided about 80,000 tons of sugarcane to the ACSIL in January this year. During past years, the ACSIL was making payments for procured sugarcane in 15 days to one month time. But it is alleged that the ACSIL has till date not made payments for procured sugarcane to the farmers. “Because of this, the farmers are compelled to pay extra interest to banks and cooperative bodies for their agricultural loans of the last season,” said Mr Jena.
According to Mr Jena, if agricultural loans are repaid by March 31, then the interest rate is minimal at two per cent. But delay in payment leads to penalty interest at 13 per cent from the date of commencement of the loan. The GDSGA feels as the farmers could not repay their loans because of the delay in payment by the ACSIL. The sugar mill should take the responsibility and pay the penalty interest on agricultural loans of sugarcane farmers. Moreover, this payment should be made as early as possible, Mr Jena added.
