Godrej Agrovet and The State Bank of India to launch first-of-its-kind finance offering for Indian Oil Palm farmers
19 May 2023, Hyderabad: Godrej Agrovet’s Oil Palm Business today announced the launch of a first-of-its-kind finance offering for oil palm farmers in partnership with the State Bank of India (SBI). A product jointly developed by the company and the country’s leading public sector bank will enable farmers to avail loans for setting up micro irrigation facilities, set up fencing arrangements to protect from cattle grazing, and improvement of tube well at their oil palm farms. Introduced to aid 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.
Sougata Niyogi, CEO of Oil Palm Business, Godrej Agrovet said, “The partnership with SBI is a testament to 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.”
“The implementation of the 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 the industry’s expansion and prosperity,” he further added.
Launched initially for the oil palm farmers of Telangana state, Godrej Agrovet farmers from the states of Tamil Nadu, Odisha, Assam, Manipur, and Tripura can now easily avail a loan with the ticket-size of INR 1 Lac to INR 50 Crore.
Commenting on a first-of-its-kind Horticulture Loan, K.V.L.N. Murthy, A.G.M. ABU Hyderabad, SBI, said, “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 INR 1.6 Lacs, 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.”
Godrej Agrovet is the largest oil palm processor in India and works directly with farmers for the entire lifecycle of their crops. With 65,000 hectares of palm oil under cultivation across the country, the company plans to increase cultivation by 1 Lac hectares by 2027. Through its Samadhan centers, a one-stop solution center, it provides a comprehensive package of knowledge, tools, services, and solutions to oil palm farmers. Each Samadhan center intends to support the planting of 2,000 hectares of oil palm and help farmers achieve sustained productivity in mature gardens through the use of modern agricultural technologies and expert advice. The partnership with the SBI is another step to boost the income and productivity of oil palm farmers.
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