NCDC is Preparing to Help Set Up 8000 FPOs: MD Sundeep Nayak

In midst of the farmer's agitation, Nabard Chairman Dr GR Chintala visited NCDC headquarters last week and met Managing Director Sundeep Nayak.

As per sources, the main aim of the meeting was to boost the formation of Farmers Producer Organization (FPO) across states.

Preparing to Help Set Up 8000 FPOs

Briefing about the content of the meeting, NCDC Managing Director said to Indian Cooperative that NCDC and Nabard are going to help form thousands of FPOs across India. We aim to set up 8000 FPOs, Nayak added.

There will be a Credit Guarantee Fund of up to Rs 1,000 crore in NABARD

There will be a Credit Guarantee Fund of up to Rs 1,000 crore in NABARD with equal contribution by DAC&FW and NABARD and Credit Guarantee Fund of Rs.500 crore in NCDC with equal contribution by DAC&FW and NCDC for providing suitable credit guarantee cover to accelerate flow of institutional credit to FPOs by minimising the risk of financial institutions for granting loan to FPOs.

Welcoming Nabard Chairman NCDC India, the FB page of co-op lender wrote “Welcome and Happy New Year Dr GR Chintala, Chairman NABARD and Member Board of Management NCDC. He visited NCDC headquarters in Delhi today. NABARD and NCDC have joined hands to give boost to all round farmers prosperity.”

8000 FPOs is just the beginning and what you see is just the tip of the ice-berg. We have ambitious plan for popularising the FPOs, Nayak said on phone, said NCDC MD Nayak.

It bears recall that the Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for massive formation of FPOs across the states to ensure economies of scale for farmers. Support to each FPO would be continued for 5 years from its year of inception.