SBI steps up corporate partnerships in Agri Business
Mumbai, July 7 (UNI) State Bank of India's agri business is making rapid strides promoting partnerships with major corporates to expand benefits to farmers.
Accordingly, SBI has signed several national-level alliances with well-known corporates like Cargill, NAFED and ITC for extending finance to farmers against warehouse receipts and for seed and commercial crop cultivation, said a SBI release.
Similar MoUs with other leading corporates are under preparation in SBI. It already has tie-ups with 14 tractors, power tiller and combine harvester - manufacturing companies. MoUs were also entered into with Central Govt. promoted institutions like Small Farmers Agri Business Consortium and NABARD for jointly financing agri projects.
Besides national level alliances, the local offices of the Bank also sign with corporates for promoting area specific alliances to benefit local farmers. SBI has so far entered into alliances with over 275 corporates, national and local, covering a wide spectrum of crops and activities the major being sugar, horticulture, dairy, poultry, medicinal plants and farm mechanization.
It has big plans for integrating contract farming and value chain financing into its agri business. A separate department has been created, headed by a Dy. General Manager, to forge alliances with corporates&institutions engaged in agri business with a view to improve incomes of farmers, the release added.
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