New Delhi, June 27
State Bank of India (SBI) and National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) have entered into an agreement to finance farmers for cultivation of various crops like soyabean, paddy, jute and potato.
A memorandum of understanding (MOU) to this effect was signed here on Tuesday by Mr Anup Banerjee, Chief General Manager (ABU), State Bank of India and Mr Alok Ranjan, Managing Director, Nafed.
A release issued by Nafed said that the MOU would be applicable in Mumbai, Hyderabad, North-East, Delhi, Chennai and Bhopal circles of State Bank of India and financing would be done by large number of SBI branches located in these cities. It also said that the pact would give boost to seed production and cultivation of various crops to be procured by Nafed.
Nafed would operate through consolidating agency. About 10,000 acres of area would be covered in the contract farming arrangement.