Bhubaneswar: Nabkisan Ltd., a subsidiary of the national agriculture bank Nabard Tuesday signed an MoU with the state agriculture department for providing access to loan facilities by Farmers’ Producers Organisation (FPOs) from financial institutions. CEO Nabkisan Neeraj Verma and director horticulture BK Upadhya singed the MoU documents in the presence of chief minister Naveen Patnaik, finance minister  SashiBhusanBehera, agriculture principal secretary Dr.SauravGarg and Nabard CGM A Chandrasekhar.

The MOU encompasses creation of a separate Credit Guarantee Fund to the tune of Rs 10 crore by the state government which will be administered by Nabkisan Ltd. and pave the way to provide collateral free loans by the financial institutions of the state to the FPOs functioning in the state.

The State FPO Policy 2018 has promoted more than 300 FPOs comprising of mostly small and marginal farmers who constitute nearly 92% of the farming community in the state.