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NABARD and SFAC Ink Deal for Development of Small Farm Producers

Memorandum of Understanding (MoU) was signed by National Bank of Agriculture and Rural Development (NABARD) and Small Farmers Agribusiness Consortium (SFAC) in the presence of Union Agriculture Minister, Shri Radha Mohan Singh here today.

The Minister appreciated the efforts of both institutions to work together to fulfil their mandates efficiently. The MoU was signed by Dr.Harsh Kumar Bhanwala, Chairman, NABARD and Shri Pravesh Sharma, MD, SFAC.

The MoU seeks to bring the two institutions in close coordination for implementing schemes for promotion of Producer Organisations (POs). The SFAC is implementing a scheme of the Government of India whereby the Producers Organisations are given equity support and the financing banks are given credit guarantee cover to enable formation of PO’s.

NABARD will proactively leverage the benefits of the equity grant and credit guarantee fund for FPOs set up by SFAC to ensure that finance for producer company flows smoothly.

NABARD would actively collaborate with the SFAC at national, state and district level by participating in the Food Security Mission. NABARD informed that it has a fund of Rs.50 crore for supporting producer organisations.