27/02/2015
Press Release
Punjab National Bank signed MOU with Small Farmers’ Agri-Business Consortium (SFAC), a Society promoted by Department of Agriculture and Cooperation, Ministry of Agriculture, Govt. of India
New Delhi: (Monday, Feb 16, 2015): Punjab National Bank, one of the largest nationalized Bank andSmall Farmers’ Agri-Business Consortium (SFAC), signed MoU for providing collateral freecredit facilities to Farmer Producer Companies(FPCs) under Credit Guarantee Fund Scheme & to registered Farmer Producers Organizations (FPOs) during Lead District Managers’ Conference at PNB Central Staff College, New Delhi. On this occasion Dr. R S Sangapure, Executive Director, PNB, Dr. Rakesh Gupta, GM, PS&LB Division, Senior Officials & 63 Lead District Managers of PNB were present.
Dr. Rakesh Gupta, General Manager, Priority Sector & Lead Bank Division signed the MoU on behalf of the Bank while SFAC was represented by Ms. Sapna Nigam, Director.
Dr. R S Sangapure, Executive Director, PNB, said that in India small farmers’ livelihood are being threatened by liberalization, privatization of Indian agriculture & increasing interest of private capital in agribusiness sector. In this competitive environment, organization & collective action can help to enhance farmers’ competitiveness and increase their advantages in emerging market opportunities.
Dr. Sangapurefurther added thatCredit Guarantee Fund Scheme of SFAC will provide an opportunity to Entrepreneurs/FPCs which are not in position to provide collateral securitytostart new venture/project. Speaking on the occasion ,Dr. Rakesh Gupta, GM, PS&LB Division,said thatFarmer Producer organizations /Companies in Indian scenario is a new concept for collective action and would definitely help small holder farmers participate in emerging high value markets such as export market & the unfolding modern retail sector in India.So,FPOs/FPCsare the need of the hour
Ms. Sapna Nigam, Director,SFAC, briefly talked about theCollateral free need based Loan (Term Loan and /or Working Capital) uptoRs. 1 crore to the FPCs registered with Registrar of Companies and engaged in agriculture and allied activity underCredit Guarantee Fund Scheme of SFAC and stressed that this tie-up arrangement will strengthen the endeavor of farmers in bringing about change in their socio-economic status& ultimately lead to prosperity and upliftment of small holder farming community