NABARD GUIDELINES FOR SUPPORT TO PRODUCERS ORGANIZATIONS
NABARD GUIDELINES FOR SUPPORT TO PRODUCERS ORGANIZATIONS
Producers Organizations:
An organization will be called a producer organization if
It is formed by a group of producers for either farm or non-farm activities It is a registered body and a legal entity Producers are shareholders in the organization It deals with business activities related to the primary produce/product (either of the activities or in a combination of these activities, viz. sorting, grading, processing, packaging, marketing, etc.) It works for the benefit of the member producers Portions of profit are shared amongst the producers and the balance goes to the share capital or reserves.
Eligible Organizations:
Any registered Producer organizations i.e., Producer Company, Producer Cooperatives, registered Farmer Federations, MACS (Mutually aided cooperative society), industrial cooperative societies, other registered federations, PACS, etc. A public or private limited company set up by producers are also eligible provided they meet the requirements listed above.
NABARD’s interventions:
NABARD will undertake the following interventions: 1. Financial Intervention– NABARD will directly lend to Producer Organizations for term loans or composite loans comprising of both working capital and term loan requirements. 2. Capacity Building – NABARD will provide funds to promote the organization and skill-building exercises, and guide business planning and support technological extension. Through classroom training, exposure visits, agricultural university tie-ups, expert meetings, etc., NABARD will support capacity building needs in a structured way. Support for the capacity building could be in the form of grants, loans, or a combination of these based on the need of the situation. 3. Market Linkages – For marketing efforts of the Producer Organization, NABARD will provide credit and/ or grant support for setting up of marketing infrastructure facilities for the sale of produce. Producer Organizations can approach NABARD directly or through promoting/ implementing an organization, which should also be a registered organization. In case the Producer Organization approaches directly to NABARD, it should be in existence for a period of a minimum of three years. In case it approaches through promoting/ implementing organization, the promoting/ implementing organization should be in existence for a minimum period of three years. In such circumstances, the condition of three years’ existence of the Producers Organization can be relaxed.
Process:
I ) Submission of Concept Note by Producer Organization/ Implementing Agency for the business plan of Producer Organization: A concept note is a summary document that introduces the Producer Organization, and briefly describes the business plan which requires credit support. The Concept Note should contain:
