SBI to Offer Collateral-Free Loans to Farmer Producer Organizations
The State Bank of India (SBI) has announced a significant initiative to support farmers by providing collateral-free loans to Farmer Producer Organizations (FPOs). This move aims to help farmers work together, improve their financial stability, and strengthen cooperative efforts in agriculture.
The announcement was made during a special meeting at SBI’s Regional Manager’s Office in Mahabubnagar on Wednesday. The meeting was led by Regional Manager Anil Kumar, with Deputy General Manager (DGM) Priyabrata Mishra as the chief guest. Over 20 representatives from various FPOs attended the session, where bank officials discussed the benefits of collective farming and the importance of FPOs in the agricultural sector.
DGM Priyabrata Mishra emphasized the critical role of FPOs in transforming agriculture. He explained that unlike other industries, agriculture has historically lacked strong cooperative systems. FPOs are changing this by bringing farmers together, protecting them from financial losses, and ensuring fair trade. Mishra also highlighted how these organizations, managed by farmers themselves, address common challenges like unpredictable market prices, limited market access, and lack of trade knowledge. Additionally, FPOs provide guidance on advanced farming techniques to help farmers earn better prices for their crops.
To further assist FPOs, SBI is offering collateral-free loans to help them set up key facilities such as rice mills, dal mills, food processing units, and oil mills. Mishra encouraged FPOs to take full advantage of this opportunity to improve their operations and overcome financial hurdles.
The meeting also highlighted the struggles farmers face compared to large industries. While big companies have the power to set prices for their products, farmers often face unfair bargaining and low prices for their crops. Mishra stated that FPOs are helping bridge this gap by ensuring farmers receive fair deals and better financial security.
