PUNE: The Maharashtra State Co-op- Bank, which is the apex cooperative bank of the state, has raised its valuation for sugar from the earlier Rs 3,000 to Rs 3,100. The Rs 100 hike is seen as a relief to the sugar manufacturers. The move has come in the wake of the gradual increase in sugar rates.

The bank announced its revaluation on Monday as there has been a small but constant growth in sugar prices. The valuation of sugar is important for the sugar mills as the amount of loans that a factory will be eligible to receive, depends on the valuation set by the bank. 

Based on this valuation, banks place the feasibility of the loan and sanction feasible amount of loans. These loans help the mills pay the farmers a fair and remunerative price (FRP).

The recent estimates show that sugar might be able to fetch Rs 2,635 per quintal in the forthcoming season. This will help mills pay farmers for Rs 1,885 as sowing installment.