Krishi VaartaDainik Bhaskar
Taking a loan to start an agricultural business becomes easier
New Delhi. The central government is going to make it easy to do farming-related business. For this, the government will create 10,000 new Farmer Production Organization (FPO) in the next few years. Under the scheme, the process of getting these FPOs registered under Companies Act will be made easier. It was announced by Union Finance Minister Nirmala Sitharaman in the 2019-20 budget.
After registration of FPO under the Companies Act, it will become easy to take loans to start a farming-related business. Loans will be available from banks at a lower rate. India currently has 4500 FPOs. They have been promoted by the National Bank for Agriculture and Rural Development (NABARD) in the last few years. The FPO will be provided institutional support by the government in the first three years of operation.
Funds worth Rs 100 crore were arranged for FPOs in the year 2013-14 under the UPA government. At the same time in 2018, the NDA government exempted the FPO with a turnover of up to Rs 100 for the first 5 years.
Source - Dainik Bhaskar, 5 August 2019
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