Godrej Agrovet Ltd (GAVL) has partnered with the State Bank of India to introduce a new finance offering for oil palm farmers. This collaborative product aims to provide farmers with loans for various purposes related to their oil palm farms.
It includes the provision of funds for setting up micro irrigation facilities, establishing fencing arrangements to protect against cattle grazing, and enhancing tube wells on their farms.
Introduced with an objective of aiding oil palm growth by improving Fresh Fruit Bunches (FFB) productivity, it will act as a catalyst to maintain juvenile gardens during the gestation period of first five years, GAVL said in a statement.
Sougata Niyogi, CEO, Oil Palm Business-GAVL, said,“With no income visibility during the long gestation period, this partnership will aid bridge the gap for their finance needs during the initial years. The implementation of National Mission on Edible Oils – Oil Palm (NMEO-OP) has generated a new sense of excitement and momentum in the oil palm industry since its launch in August 2021. Being a leading player, we will continue to provide solution for industry’s expansion and prosperity,” Niyogi said.
Launched initially for the oil palm farmers of Telangana, GAVL’s farmers from other states such as Tamil Nadu, Odisha, Assam, Manipur and Tripura can now easily avail of loan with the ticket-size of ₹1 lakh to ₹50 crore.
Commenting on first-of-its kind horticulture loan, KVLN Murthy, AGM, ABU Hyderabad, SBI, said, “With no security needed for a loan up to ₹1.6 lakh, the product is ideal for farmers venturing into oil palm farming for the first time. With the entire process being facilitated by Godrej Agrovet, a farmer can easily understand product integrities and apply for the same at Samadhan centers of the company. We’re confident of extending this product to more oil palm farmers of our country in the coming months.”
GAVL is the largest oil palm processor in India and works directly with the farmers for the entire lifecycle of their crop. With 65,000 hectares of oil palm under cultivation across the country, the company plans to increase cultivation by 1 lakh hectares by 2027. Through its Samadhan centres,it provides a comprehensive package of knowledge, tools, services, and solutions to oil palm farmers. Each Samadhan centre intends to support the planting of 2,000 hectares of oil palm and help farmers achieve a sustained productivity in mature gardens through the use of modern agricultural technologies and expert advice.