MoneymintMoneymint
    • About
    • Bank
    • Blog
    • Business
    • Money
      • Credit Cards
      • Crypto
      • Investments
      • Tips
      • Review
    • Net Worth
    • Disclosure
      • DMCA
      • Terms and Conditions
      • Privacy Policy
    Subscribe
    MoneymintMoneymint
    Home»Business»Agribusiness»NABARD

    Nabard funding and support for Producers Organization

    Sushma SinghBy Sushma SinghNovember 10, 2022 NABARD
    Facebook Twitter LinkedIn Email
    nabard
    Share
    Facebook Twitter LinkedIn Pinterest Email

    National Bank for Agriculture and Rural Development (NABARD) has created the “Producers Organization Development Fund” to comprehensively support Producer Organizations in different forms across the country.

    NABARD GUIDELINES FOR SUPPORT TO PRODUCERS ORGANIZATIONS

    Producers Organizations:

    An organization will be called a producer organization if

    • It is formed by a group of producers for either farm or non-farm activities
    • It is a registered body and a legal entity
    • Producers are shareholders in the organization
    • It deals with business activities related to the primary produce/product (either of the activities or in a combination of these activities, viz. sorting, grading, processing, packaging, marketing, etc.)
    • It works for the benefit of the member producers
    • Portions of profit are shared amongst the producers and the balance goes to the share capital or reserves.

    Eligible Organizations:

    Any registered Producer organizations i.e., Producer Company, Producer Cooperatives, registered Farmer Federations, MACS (Mutually aided cooperative society), industrial cooperative societies, other registered federations, PACS, etc. A public or private limited company set up by producers are also eligible provided they meet the requirements listed above.

    nabard

    NABARD’s interventions:

    NABARD will undertake the following interventions:

    1. Financial Intervention– NABARD will directly lend to Producer Organizations for term loans or composite loans comprising of both working capital and term loan requirements.

    2. Capacity Building – NABARD will provide funds to promote the organization and skill-building exercises, and guide business planning and support technological extension. Through classroom training, exposure visits, agricultural university tie-ups, expert meetings, etc., NABARD will support capacity building needs in a structured way. Support for the capacity building could be in the form of grants, loans, or a combination of these based on the need of the situation.

    3. Market Linkages – For marketing efforts of the Producer Organization, NABARD will provide credit and/ or grant support for setting up of marketing infrastructure facilities for the sale of produce.

    Producer Organizations can approach NABARD directly or through promoting/ implementing an organization, which should also be a registered organization. In case the Producer Organization approaches directly to NABARD, it should be in existence for a period of a minimum of three years. In case it approaches through promoting/ implementing organization, the promoting/ implementing organization should be in existence for a minimum period of three years. In such circumstances, the condition of three years’ existence of the Producers Organization can be relaxed.

    Process:

    I ) Submission of Concept Note by Producer Organization/ Implementing Agency for the business plan of Producer Organization:

    A concept note is a summary document that introduces the Producer Organization, and briefly describes the business plan which requires credit support. The Concept Note should contain:

    1. Details of Producer Organization including a number of producers, type of producers,/ producer groups, producers share, activity/ produce, the current status of income, profits, etc.

    2. Profile of the promoting/ implementing organization, and its role in the development of the Producer Organization.

    3. Description of additional benefits provided to producers (income enhancement & livelihood generation) through the formation of Producer Organization.

    4. Details of project management (Executive team and board of directors with qualification and experience) of Producer Organization & Promoting/ Implementing agency.

    5. Brief details of the proposed business plan.

    6. Brief details of financial requirements for executing the business plan.

    7. Last 3 years audited financial statements (Balance Sheet & P/L statement) of Producer Organization &/ or Promoting/ Implementing agency with notes on accounts & annexure.

    8. Details of earlier/ current loans and grants if any (sanction letters) availed from NABARD and other Banks/ FIs.

    9. Details of security/collaterals to be offered. Please note the collateral offered has an impact on the interest rate.

    Please note that the concept note is not a document on the basis of which a decision on accepting a proposal will be made. It just serves as a draft of the business plan (Annexure –I) and will help in analyzing the status of the Producers Organization. This is a stage to get a basic understanding of the project and to decide as to whether one can go ahead with the preparation of the Detailed Project Report (DPR) for appraisal. Please note that the structure for the concept note given above should be adhered to.

    II) Submission of Detailed Project Report by Producer Organization/ Implementing

    Agency: After the approval of Concept Note by NABARD, the Producer Organization or Promoting/ Implementing agency will be advised to submit the Detailed Project Report indicating the business plan. The format for the preparation of DPR is given at Annexure-II.

    Nabard Guidelines Producers Support-pdf-14-Pages-90KB

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    sushma
    Sushma Singh

      Sushma is a seasoned business writer and content creator with over 7 years of experience in the field. She has a talent for taking complex topics and breaking them down into easily understandable language that engages and educates her readers. Her expertise allows her to cover a wide range of topics relevant to the B2B industry, providing business owners with the knowledge they need to make informed decisions and drive growth.

      Keep Reading
      nabard-schemes-2012

      NABARD 2012 : List of Schemes for availing subsidy, grants, funding and loans

      NABARD looking to invest in Venture Capital Fund

      NABARD looking to invest in Venture Capital Fund

      nabard

      List of Government Sponsored Subsidy Schemes under NABARD

      Latest Articles


      How does eBay Payment Work – Full Guide
      September 21, 2023
      Dhruv Rathee Net Worth
      September 21, 2023
      Kuldeep Yadav Net Worth
      September 21, 2023
      How to Make Money on Pinterest Without a Blog
      September 19, 2023
      CZN Burak Net Worth
      September 19, 2023
      Honey Singh Net Worth
      September 18, 2023
      How to Avoid eBay Buyer Scam
      September 21, 2023
      Raghav Juyal Net Worth
      September 15, 2023
      Tanmay Bhat Net Worth
      September 14, 2023
      How to Use Pinterest for Affiliate Marketing
      September 19, 2023
      Moneymint
      Welcome to Moneymint.com, your go-to destination for navigating the intersection of business and money. Our platform offers insights, resources, and tools to help entrepreneurs and business owners navigate the financial landscape and achieve success.

      Our team is dedicated to providing you with proven advice and ideas from the best in the industry.
      Categories
      • Bank
      • Business
      • Credit Cards
      • Crypto
      • Loan
      • Money
      • Net Worth
      DISCLAIMER

      The information provided on this page is for informational purposes only. We encourage you to conduct your own research and due diligence on any entities named in this article. We are not affiliated with, endorsed by, or sponsored by any products, corporations, or their affiliates or subsidiaries. References to the mentioned apps/websites are dynamic in nature, and we shall strive to keep these updated. The numbers stated may differ from the actual numbers.

      © 2023 Framed Media
      • About
      • Contact us
      • DMCA
      • Terms
      • Privacy Policy

      Type above and press Enter to search. Press Esc to cancel.