Godrej Agrovet and SBI Unite to Empower Indian Oil Palm Farmers with New Finance Offerings

On May 18th, Godrej Agrovet's oil palm business announced a finance offering for oil palm farmers in partnership with the State Bank of India.

This collaborative product, developed by the company and the leading public sector bank, will provide loans to farmers for various purposes such as setting up micro irrigation systems, establishing protective fencing against cattle grazing, and improving tube wells on their oil palm farms.

This initiative aims to support the growth of oil palm by enhancing the productivity of Fresh Fruit Bunches (FFB) and assisting in the maintenance of young gardens during the critical first five years.

"The collaboration with SBI validates our company's commitment to enhancing farmers' trust in sustainable oil palm cultivation. Given the absence of income certainty during the extended gestation phase, this partnership will help address their financial requirements in the early years," Sougata Niyogi, CEO, Oil Palm Business informed. 

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He further added, "The launch of the National Mission on Edible Oils – Oil Palm (NMEO-OP) in August 2021 has revitalized the oil palm industry, sparking enthusiasm and momentum. As a prominent player in the industry, we are committed to offering solutions that promote its growth and success."

Godrej Agrovet, the agribusiness company, has expanded its loan services beyond Telangana to include farmers in Tamil Nadu, Odisha, Assam, Manipur, and Tripura. Initially launched for oil palm farmers in Telangana, the loan range now extends from INR 1 lakh to INR 50 crores, providing easy access for farmers in these states.

"We are pleased to collaborate with Godrej Agrovet in the national effort to reduce oil palm imports," said KVLN Murthy, AGM - ABU Hyderabad, State Bank of India. "Our horticulture loan, requiring no collateral for amounts up to INR 1.6 lakhs, is well-suited for first-time oil palm farmers. The entire application process is streamlined through Godrej Agrovet, where farmers can easily comprehend the product details and apply at the company's Samadhan centers. We are confident that in the coming months, we will be able to offer this product to a greater number of oil palm farmers in our country."

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Godrej Agrovet collaborates directly with farmers throughout the entire lifecycle of their crops. With 65,000 hectares of palm oil currently cultivated nationwide, the company aims to expand cultivation by an additional one lakh hectares by 2027.

Through their Samadhan centers, which serve as one-stop solution centers, Godrej Agrovet offers oil palm growers a comprehensive package of knowledge, tools, services, and solutions. Each Samadhan center aims to support the planting of 2,000 hectares of oil palm and assist farmers in achieving sustained productivity in mature gardens through the implementation of modern agricultural technologies and expert guidance.

The partnership with SBI is yet another initiative by Godrej Agrovet to enhance the income and productivity of oil palm farmers.

- ET

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