The National Bank of Agriculture and Rural Development (NABARD) inked a Memorandum of Understanding(MoU) with Small Farmers Agribusiness Consortium (SFAC) for development of small farm producers.
The MoU seeks to bring the 3 institutions in close coordination for implementing schemes for promotion of Producer Organizations (POs). The SFAC is implementing a scheme of the Government of India whereby the Producers Organizations are given equity support and the financing banks are given credit guarantee cover to enable formation of PO.
NABARD will proactively leverage the benefits of the equity grant and credit guarantee fund for POs set up by SFAC to ensure that finance for producer company flows smoothly. NABARD would also actively collaborate with the SFAC at national, state and district level by participating in the Food Security Mission. NABARD has a fund of Rs 50 crore for supporting producer organizations.