The National Cooperative Development Corporation (NCDC) has announced a reduction in interest rates for term and working capital loans provided to cooperative sector sugar mills.

This move aims to ease the financial burden on these mills, which play a crucial role in India's sugar production.

Under the new scheme, interest rates for term loans have been set at 8.5% and for working capital loans at 8%.

These reduced rates are expected to offer significant relief to sugar mills, particularly in states like Maharashtra, Uttar Pradesh, and Haryana, where many cooperative mills operate.

The reduced interest rates will apply to new loans, while loans taken before the revision will continue to carry the previous interest rates.

This initiative is part of the Central Sector Scheme, which includes annual interest rate cuts for loans given to strengthen the cooperative sugar mills across the country.

By lowering the financial burden, the NCDC aims to boost the capacity and modernization efforts of cooperative sugar mills, benefiting approximately five crore sugarcane farmers across India.