The Hindu Business Line : Nabard okays Rs 66-lakh loan for gherkin projects in Karnataka

IN an effort to promote contract farming under the notified agri-export zones (AEZs), Nabard has sanctioned two projects with a financial outlay of Rs 66 lakh for financing gherkin cultivation in Hassan and Kolar districts.

Speaking to newspersons, Mr B.B. Mohanty, Chief General Manager, said the assistance scheme for AEZs was launched last year and the bank would step up its efforts depending on the viability of the projects.

Nabard has also prepared a banking plan for extending assistance for generator sets to meet the power requirements of the projects.

Two other notified AEZs for rose onions, one of the major export items from Karnataka, and floriculture would also be considered for similar assistance.

Besides project finance, Nabard would also conduct sensitisation programmes for farmers, bankers, research institutions, promoters and exporters. Ten districts in the State would be covered under the AEZs where Nabard would extend assistance.In a similar export promotion programme, Nabard has also decided to encourage commercial cultivation of medicinal, aromatic and dye crops, mainly on contract basis. Nabard has identified more than 30 such varieties and has worked out the cost of cultivation with respect to the major crops having potential in the State. The details would be announced later, Mr Mohanty said.

Nabard has planned the proposal in consultation with some of the pharmaceuticals companies who would be providing the technical and marketing advice, while the bank and commercial banks would take loan exposure to encourage projects. In view of the assured buyback arrangements under the contract farming arrangement, Nabard and banks do not visualise any great risk of NPA, Mr Mohanty said.

On whether vanilla would be eligible for assistance, he said that it would as it has aromatic value. On the proposed Rs 50,000-crore Lok Nayak Jai Prakash Narain Fund, targeted at helping small farmers for commercial agriculture and infrastrucuture financing, Mr Mohanty said that the State-wise allocation was yet to be made

More Stories on : Contract Farming | Karnataka | Agricultural Institutions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
FMC forms panel to study hurdles in commodity futures

Nabard okays Rs 66-lakh loan for gherkin projects in Karnataka

Matrix Bio plant goes on stream

Rubber moves up on low arrivals

Silver hits all-time high of Rs 12,270

Alapuzha coir cluster gets modified ratt

Price fall knocks off cashew exports' value

Rain brings relief to coffee growers

Poultry sector buys bajra to counter maize price surge

`Distortions in farm trade must be addressed'