Mumbai: Agriculture plays a very important role in both economic development and Nation building. NABARD has continuously been working towards the prosperity of the rural and agriculture sector. The Government of India launched a Central Sector Scheme titled “Formation and Promotion of 10,000 Farmer Produce Organizations (FPOs)” with a clear strategy and committed resources to form and promote 10,000 new FPOs in the country.  Under this Scheme a dedicated fund for providing Credit Guarantees to FPOs has been set up.

The Credit Guarantee Fund of Rs. 1000 crores will be housed in “Credit Guarantee Fund Trust for Farmer Producer Organisations” (CGFTFPO) under the trusteeship of NABSanrakshan Trustee Private Limited (NTPL), a wholly owned subsidiary of NABARD.

The Trust was registered at Mumbai and signed by officials of Ministry of Agriculture and Farmers Welfare, GoI and NABSanrakshan.

The CGFTFPO is only the second such Trust formed in the agriculture and allied sector for providing credit guarantee. It is expected that the credit guarantee offered through the Trust will enhance the credit worthiness of FPOs besides facilitating cost effective production and productivity leading to higher net incomes to the farmers who are members of FPOs.