Farmer Producer Organisation:
NABARD has taken an initiative for supporting producer organizations, adopting a flexible approach to meet the needs of producers. In order to give a special focus, the “Producers Organization Development Fund”(PODF) has been set up with effective from 01 April 2011, with an initial corpus of 50 crore . Producers Organization Development Fund (PODF) is used to support Producers Organizations across three levers, viz. credit support, capacity building and market linkage. The objective of the fund is to meet end to end requirements of Producers Organization as well as to ensure their sustainability and economic viability.
NABARD has identified Vanavarayar Institute of Agriculture as the Producer Organization Promoting Institution or POPI for Promotion and nurturing of 05 Farmers Producer Organizations (FPOs) with 500 farmer members per FPO in Coimbatore and Tirupur Districts. NABARD has sanctioned an amount of Rs. 45.30 lakhs to establish (5 FPOs). The registration of 5 FPOs has been completed.
The Farmer Producer Companies promoted by VIA is given below.
- Thirumoorthimalai Farmer Producer Company Limited, Udukampalayam, Tirupur
- Coimbatore Coconut Producer Company Limited, Ramapattinam, CBE
- Pasumai Coconut Producer Company Limited, Perumpathy, CBE
- Cheran Farmer Producer Company Limited, Madathukulam, Tirupur
- Vavi Farmer Producer Company Limited, Vavaipalayam, Tirupur
Producers Organization is eligible for the following types of loans:
- Direct lending to Producers Organization for term loans or
- Composite loans comprising of both working capital and term loan requirements, or
- Working Capital as composite loan
- Subordinated Debt as tier II capital based on the requirements of the PO and provided the Memorandum and Articles of Association/byelaws permit them to accept such a debt.
- Technological extension through classroom training,
- Business planning
- Skill development in order to enable the members produce goods both in farm and non-farm sector,
- Exposure visits, agricultural university tie ups, expert meetings, etc.
- Any other capacity building initiative which directly benefits the P.O.
- Credit and/or grant support for setting up of marketing infrastructure facilities for sale of produce.
- Support could even be in the lines of rural haat and rural mart if the situation so desires or it could be structured differently based on the need.
- NABARD will explore tie ups with buyers for Producers Organization’s produce.
- NABARD shall help form partnerships between Producers Organizations and local and large companies.
- Through existing schemes of MoRD and NHM, NABARD will promote creation of infrastructure wherever possible.
Mr. KV. Rao, CGM, NABARD, Mr. SM. Karuppanchetty, Prof. C. Ramasamy , Secretary, NIA Educational Institutions during the meeting.
Farmers gathering during inauguration function.