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Credit guarantee coverage under CGS-FPO scheme is available provided by NABSANRAKSHAN (subsidiary of NABARD) up to Rs. 2.00 cr.
Eligible activities for Credit guarantee:
Supply quality production inputs like seed, fertilizer, pesticides, and such other inputs at reasonably lower wholesale rates.
Make available need-based production and post-production machinery and equipment like cultivator, tiller, sprinkler set, combine harvester and such other machinery and equipment on custom hiring basis for members to reduce the per unit production cost.
Make available value addition like cleaning, assaying, sorting, grading, packing and farm level processing facilities at user charge basis on reasonably cheaper rate. Storage and transportation facilities may also be made available.
Undertake higher income generating activities like seed production, bee keeping, mushroom cultivation etc.
Undertake aggregation of smaller lots of farmer-members' produce; add value to make them more marketable.
Facilitate market information about the produce for judicious decision in production and marketing.
Facilitate logistics services such as storage, transportation, loading/unloading etc. on shared cost basis.
Market the aggregated produce with better negotiation strength to the buyers and in the marketing, channels offering better and remunerative prices.
Activities eligible under Agriculture Infrastructure Fund.
Other eligibilities:
The FPO/FPCs should have a minimum capital of Rs. 5.00 Lakhs
The minimum number of farmer producer in FPC is 500 & for FPO in plain areas is 300 and North-eastern & Hilly areas which are 1000 metres above sea level, size of 100 will be considered.
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