Alathur: Supplyco officials continue to wait for good news from the bank consortium regarding loan disbursal. It should be noted that Supplyco had requested Rs 400 crores from the banks to pay the farmers.

The bank consortium is reluctant to grant further loans to Supplyco citing outstanding loans amounting to Rs 4,000 crores. The banks are demanding a guarantee from the Kerala government regarding the repayment of the outstanding loans.  A high level meeting involving financial and food secretaries, bank and Supplyco officials, seems to have reached a conclusion regarding the disbursal of loans.

At present, a total of Rs 700 crores are being distributed among farmers. The loan was provided by the consortium of SBI, Canara, and Federal Bank.However, Rs 400 crores more is required for completing the payment.