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NABARD funding and guidance for Small Producer organizations

Producers Organization Development Fund (PODF)

PODF was created by National Bank for Agriculture and Rural Development (NABARD) in order to support producing organizations in a comprehensive manner. The support will be provided in three levels: credit support, capacity building and market linkage. It was started in 2011 with the initial corpus of INR 50 Cr with the ceiling limit of INR 100 CR.

Who are the producer organizations?

  • A group formed by producers for farm/non-farm activities.
  • Should be a registered and legal body.
  • Producers are the shareholders in the organization.
  • The org. is in the business related to primary product.
  • All the members are benefitted in the org.

 Eligible Organizations:

  • Producer organizations
  • Producer cooperatives
  • Framer federations
  • Industrial cooperative societies
  • Other registered federations.
  • Private or public company set up by the producers are also eligible under this scheme.

NABARD’s Guidance and Support:

  • NABARD will provide term loans or composite loans directly to producer org.
  • NABARD will also provide funds for skill development of the members of the org. along with guidance in technological advancement and business planning. NABARD will enhance the capacity of the org. by providing classroom training, exposure visits, etc.
  • NABARD will provide funds and grants for setting up the infrastructure facility.


  • Submitting a Concept note: It consists of
  1. Details of producer org.’s members, type of production, and producer groups along with producer’s share and current income etc.
  2. Profile of promoting org. of the producer org.
  3. Details of income enhancement and livelihood generation – it should clarly indicate that how the grant will help the org. in order to become more self-sufficient.
  4. Details of the executive team discussing their experience and expertise.
  5. A sound business plan.
  6. How much fund will be needed under the business plan – a brief report.
  7. Past three years audited bank statements.
  8. Details of other bank loans taken from other financial institutions.
  9. Details of security or collateral.

Note: The concept note is not a document on the basis which the decision will be made. It is simply a draft (Annexture-1) of the business plan that enables the decision makers to analyse the status of the producing org.

  • Submitting a Detailed Project Report:

After the approval of concept note by NABARD, the producing org will be asked to submit the final project report in the format provided by them. The format is given in Annexture-2.

For more information, CLICK HERE.

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PC: efytimes.com

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