Godrej Agrovet partners SBI to extend finance to oil palm growers
Godrej Agrovet Ltd (GAVL) has partnered with State Bank of India to offer a new financing offer to oil palm growers. This cooperative product aims to provide farmers with loans for various purposes related to their oil palm plantations.
It includes providing funds to set up small irrigation facilities, put in place fencing arrangements to protect against grazing livestock, and improve tube wells on their farms.
It was introduced with the aim of aiding oil palm growth by improving the yield of fresh fruit bunches (FFB), and will act as a catalyst for the maintenance of juvenile gardens during their first five-year gestation period, GAVL said in a statement.
Sugata Nyogi, CEO of Oil Palm Business-GAVL said, “With no apparent income during the long gestation period, this partnership will help bridge the gap for their financial needs during the early years. The implementation of the National Edible Oils – Palm Oil Mission (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 to the industry,” said Nyogi.
Initially launched for oil palm farmers in Telangana, GAVL farmers from other states like Tamil Nadu, Odisha, Assam, Manipur and Tripura can now easily avail a ticket size loan from 1 lakh to 50 crore.
Commenting on the first-of-its-kind horticultural loan, KVLN Murthy, AGM, ABU Hyderabad, SBI said, “With no insurance required for a loan of up to Rs 1.6 lakh, the product is ideal for farmers who are venturing into oil palm cultivation for the first time. While facilitating the whole process By Godrej Agrovet, growers can easily understand product integration and apply for it at the company’s Samadhan centers. We are confident to expand this product to more oil palm growers in our country in the coming months.”
GAVL is India’s largest palm oil processor and works directly with farmers throughout the life cycle of their crop. With 65,000 hectares of oil palm cultivated across the country, the company plans to increase cultivation by 1 hectare by 2027. Through its Samadhan Centres, it provides a comprehensive suite of knowledge, tools, services and solutions to oil palm growers. Each Samadhan Center intends to support the cultivation of 2,000 hectares of palm oil and help farmers achieve sustainable productivity in mature gardens through the use of modern agricultural techniques and expert advice.