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Bank of India, Suguna Poultry to assist farmers increase production

by 5m Editor
18 December 2006, at 3:00pm

INDIA - The Agri-business unit of the State Bank of India has signed a memorandum of understanding (MoU) with Suguna Poultry Farm Ltd. to assist contract farmers engaged in poultry-related activities double their production.

According to the agreement, Suguna Poultry, a pioneer in integrated broiler farming activities, would recommend its contract farmers to avail hassle-free financial assistance from the SBI. The bank, in turn, would extend loans up to Rs 1 lakh without any security to those farmers recommended by the poultry farm as it would procure products from the same farmers.

The MoU was signed by KJ Taori, General Manager (Agri-Business), SBI, Mumbai, and R Kuppanna, General Manager, Mid Corporate Group, SBI, Chennai, on behalf of the bank. B Soundarajan, Managing Director, Suguna Poultry Farm Ltd, signed for the company. R Kumar, Deputy General Manager, Commercial Branch, SBI, Coimbatore, was present.

According to the signatories, the agreement would enable the farmers to obtain easy loans for creation of assets, guaranteed supply of chickens and quality feed, regular veterinary guidance and supervision and protective shield from marketing problems.

It would generate about Rs 200 crore business in seven states - Tamil Nadu, Andhra Pradesh, Maharashtra, Punjab, Orissa and Gujarat. The farmers’ annual income would also increase by 100 percent by 2010.

Taori said that encouraging contract farming would not only provide employment to youths but also open the door for the uneducated unemployed to start poultry business. He said in Tamil Nadu, the bank’s lending to the agriculture sector was Rs 4,325 crore, of which 152 crore was disbursed to poultry sector.

Taori said that the rate of interest would be 9.5 percent for loans and repayment in the contract farming would be prompt.

ThePoultrySite News Desk

5m Editor