Chennai
According to the GO, based on the announcement by Chief Minister Edappadi K Palaniswami that for implementation of capital assistance, credit guarantee scheme and interest subvention scheme Rs 266 crore loan assistance would be provided in the current year and based on the announcement out Rs 266 crore administrative sanction was given for Rs 66.67 crore.
According to Tamil Nadu Small Farmers Agri Business Consortium (TNSFAC), there are around 500 farmer producer companies registered in the state out of which 130 companies have been promoted by the Department of Agricultural Marketing and Agri Business through TNSFAC.
The farmer producer companies are facing financial difficulty in formation and mobilisation stage, they need working capital to run their input supply businesses. One of the main policy decisions of the government is to ensure availability of adequate credit to farmer producer companies and discussions were held with stakeholders.
It was proposed that in addition to assistance from TNSFAC a margin fund corpus would be constituted with a lending agency which would invest in the capital of the farmer producer companies.
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