Nabard subsidiary NABSanrakshan has signed a trust deed for Credit Guarantee Fund Trust for Farmer Producer Organisations (CGFTFPO). The credit guarantee fund of Rs 1, 000 crore will be housed in Credit Guarantee Fund Trust for FPOs.
Agriculture plays a very important role in both economic development and nation building. NABARD has continuously been working towards the prosperity of the rural and agriculture sector. The government has launched a Central sector scheme titled “Formation and Promotion of 10,000 Farmer Produce Organizations (FPOs)” with a clear strategy and committed resources to form and promote 10,000 new FPOs in the country. Under this scheme a dedicated fund for providing credit guarantees to FPOs has been set up.
The trust is registered at Mumbai and signed by officials of ministry of agriculture and farmers welfare and NABSanrakshan.
The CGFTFPO is only the second such trust formed in the agriculture and allied sector for providing credit guarantee. It is expected that the credit guarantee offered through the Trust will enhance the credit worthiness of FPOs besides facilitating cost effective production and productivity leading to higher net incomes to the farmers who are members of FPOs.Internet Explorer Channel Network