Godrej Agrovet, SBI partner to offer loans to palm oil farmers: Report

With 65,000 hectares of palm oil under cultivation across the country, the company plans to increase cultivation by 1 lakh hectares by 2027

Press Trust of India Mumbai
Photo: Bloomberg

Photo: Bloomberg

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Godrej Agrovet's Oil Palm Business on Thursday said it has partnered with the State Bank of India (SBI) to offer loans to oil palm farmers for setting up micro irrigation facility and install fencing to protect crops from cattle and improvement of tube well at their oil palm 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 the first 5 years, Godrej Agrovet said in a statement.

"The partnership with SBI is a testament of our company's efforts to improve farmer's confidence in sustainable oil palm farming. With no income visibility during the long gestation period, this partnership will aid bridge the gap for their finance needs during the initial years," Godrej Agrovet CEO, Oil Palm Business, Sougata Niyogi said.

He further stated that 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 solutions for industry's expansion and prosperity," he added.

Launched initially for the oil palm farmers of Telangana, Godrej Agrovet farmers from the states of Tamil Nadu, Odisha, Assam, Manipur and Tripura can now easily avail loan with the ticket-size of Rs 1 lakh to Rs 50 crore, said the statement.

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"We're happy to partner with Godrej Agrovet in the nation's quest to reduce import of oil palm. With no security needed for a loan up to Rs 1.6 lakhs, 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 centres of the company. We're confident of extending this product to more oil palm farmers of our country in the coming months," SBI AGM ABU Hyderabad K V L N Murthy said.

Godrej Agrovet 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 palm oil under cultivation across the country, the company plans to increase cultivation by 1 lakh hectares by 2027.

Through its Samadhan centres, a one-stop solution centre, it provides a comprehensive package of knowledge, tools, services, and solutions to oil palm farmers.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: May 19 2023 | 12:07 AM IST

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