SBI offers collateral-free loans to empower farmer groups

Mahabubnagar: In a major boost to farmers, the State Bank of India (SBI) announced that it will provide collateral-free loans to Farmer Producer Organizations (FPOs). The initiative aims to help farmers organise, grow, and achieve financial stability by promoting cooperative efforts in agriculture.

The announcement was made during a special meeting held at SBI’s Regional Manager’s Office in Mahbubnagar on Wednesday. The meeting, chaired by Regional Manager Anil Kumar, had Deputy General Manager (DGM) Priyabrata Mishra as the chief guest. Over 20 representatives from various FPOs attended the session, where bank officials shared insights on the importance of collective farming and the benefits of FPOs.

DGM Mishra highlighted the significance of FPOs in revolutionising the agricultural sector. “Unlike other industries, agriculture has lacked effective cooperative models. FPOs are changing this by uniting farmers, ensuring fair trade, and protecting them from financial losses,” he said. He explained that FPOs, managed by farmers themselves, help overcome challenges like fluctuating prices, lack of market access, and insufficient trade knowledge. These organisations also provide guidance on better farming techniques, ensuring farmers get fair prices for their produce.

To support FPOs, SBI is offering collateral-free loans to help them establish facilities such as rice mills, dal mills, food processing units, and oil mills. Mishra urged FPOs to take full advantage of this opportunity. The meeting also shed light on the struggles farmers face compared to large industries. “While big companies set prices for their products, farmers often face bargaining and unfair deals for their crops. FPOs are bridging this gap and ensuring farmers get their due,” Mishra added.