Financing and supporting Producer Organisations
NABARD has taken an initiative for supporting producer organizations, adopting a flexible approach to meet the needs of producers. In order to give a special focus, the “Producers Organization Development Fund”(PODF) has been set up wef 01 April 2011, with an initial corpus of 50 crore . Any registered Producers Organization viz, Producers Company( as defined under Sec 581 A in part IXA of Company’s Act 1956), Producers Cooperatives, registered Farmer Federations, MACS (Mutually aided cooperative society), industrial cooperative societies, other registered federations, PACS, etc. set up by producers are eligible under the fund. Support under PODF is provided as under:
Credit Support is provided for financial intervention. Support in the form of grant, loans, or a combination of these is also available for capacity building & market interventions.
Since most of the Producers Organisations are having low capital base, scope for NABARD's intervention under PODF has been enhanced to support Producers Organisations for contribution to share capital.