The Hindu Business Line : Syndicate Bank, Godrej Agrovet sign MoU

The Karwar regional office of Syndicate Bank has signed a memorandum of understanding with Godrej Agrovet Ltd for promotion of oil palm cultivation in Uttara Kannada district.

A press release by the Karwar regional office of the bank said here on Tuesday that Godrej Agrovet Ltd intends to take up cultivation of the crop under contract farming in Joida, Karwar and Yellapur taluks of Uttara Kannada district.

As per the MoU, the company and the bank will jointly identify the beneficiaries. The company, which will provide agriculture inputs and technical services to the farmers, will guarantee the marketing of the produce.

The bank will provide term loan of Rs 37,000 to each farmer for cultivation of the crop. The amount will be released in four-yearly instalments and the loan will have to be repaid by the farmer from the seventh year after planting of the crop.

The release said that the crop is expected to yield Rs 33,000 to Rs 40,000 per acre and the Department of Horticulture will provide subsidy to the tune of Rs 23,000 per hectare.

The company and the bank propose to extend the scheme to Sirsi and Siiddapur taluks of Uttara Kannada district in the coming days. To service the interest part during the initial period, farmers can take up inter-crops such as banana, vanilla and ground nut, the release said.

It said that the centre has authorised Godrej Agrovet Ltd for the promotion of oil palm cultivation in Uttara Kannada district.

More Stories on : Contract Farming | Oilseeds & Edible Oil | Credit Market | Karnataka

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