Amid the countrywide lockdown to prevent the global pandemic COVID-19, it is witnessed that farmers and workers have been suffering the most with financial crisis. In this situation, many people are struggling with scarcity and financial problems. However, the government has been releasing relief measures and financial assistance for farmers, workers and daily wagers to help them fighting against this pandemic. On the other hand, banks are also working hand in hand with the government to help the needy. As per report, the Bank of Baroda has also taken some important steps for the farmers amid this crisis and announced an emergency credit line to Farmers Producer Organizations. It has also announced financial assistance up to 1 lakh rupees to women self-help groups (SHGs).
As per reports, farmer’s organizations can avail loans up to Rs 5 lakh instantly along with a subsidy amount. Moreover, the farmer’s organization will also get many discounts while repaying this loan.
SHGs-COVID 19 scheme
Bank of Baroda will provide financial assistance of up to 1 lakh rupees to women self-help groups (SHGs). As per the bank official, this announcement has been made under the SHGs-COVID 19 scheme. Under this scheme, assistance will be provided to SHG along with facilities like bank cash credit, overdraft or term loan.
Instant credit facility for dairy and fisheries
The instant credit facility will be provided by the bank to dairy and fisheries farmers. This emergency fund will help to meet all the needs of dairy and fishery farmers amid this crisis.
How Farmers Can Avail Loan from Bank of Baroda?
The bank says that a SHG will be given a loan of at least 30 thousand rupees. A maximum loan of up to 1 lakh rupees can be given to a member. As per reports, this loan will have to be repaid within 24 months. Note that repayment of this loan will be on a monthly or 3 months basis. Along with this, a moratorium of 6 months from the date of taking a loan will also be given.
Important steps of Modi government amid Lockdown
Modi government has started the scheme to start 10,000 Farmer Producer Organizations (FPO) across the states. Under this scheme, farmers who were only engaged in harvesting and production now can start the agricultural business of their own through FPOs.
How to become a Productive Organization
There should be a group of at least 11 members of farmers, who will have to register under the Companies Act. After this, the benefit of the scheme will be given for 3 years. NABARD Consultancy Services will rate the organization after monitoring their work and growth.
How Farmers can Join FPOs?
If the farmers want to get involved with FPOs, they need to contact with the office of National Agricultural and Rural Development Bank (NABARD), Small Farmers Agricultural Trade Association and National Cooperative Development Corporation.
Benefits to Member Farmers
FPO increases the collective power of farmers. This gives the farmers a good price for the produce. Moreover, the purchase of fertilizers, seeds, medicines and agricultural equipment can be easily done in this platform.
How to become a Productive Organization?
There should be a group of at least 11 members of farmers, who will have to register under the Companies Act. After this, the benefit of the scheme will be given for 3 years. NABARD Consultancy Services will rate the organization after monitoring their work and growth.
How Farmers can Join FPOs?
If the farmers want to get involved with FPOs, they need to contact the office of the National Agricultural and Rural Development Bank (NABARD), Small Farmers Agricultural Trade Association and National Cooperative Development Corporation.
Benefits to Member Farmers
FPO increases the collective power of farmers. This gives the farmers a good price for the produce. Moreover, the purchase of fertilizers, seeds, medicines and agricultural equipment can be easily done in this platform.
