Kerala Agro Business Company aims for Centre’s AAF financial assistance

Kottayam: Kerala Agro Business Company (KABCO), which aims for welfare of farmers and farming groups, is targeting assistance from the union government’s Agriculture Accelerator Fund (AAF), which provides financial support to entrepreneurs in the field of agriculture and allied sectors. 

In the union budget, the Centre had announced prioritising AAF and agricultural startups, and set aside Rs 2 lakh crores to ensure food security. Also, the central government is providing financial aid up to 60 per cent for small scale food processing units. These will also be offered generous loans for utilising digital platforms. 

As of now, as many as 100 Farmer Producer Organisations (FPO) are being set up to operate under KABCO and its formation is aided by the Small Farmers Agribusiness Consortium (SFAC). There are a total of 10,000 such organisations under the central government that receives huge assistance. 

For the Kerala-based FPOs to receive central aid, the union government has to first accept SFAC as a nodal agency. Meanwhile, state Agricultural Minister P Prasad said that the union minister for agriculture has assured assistance.

• Technical assistance and support for loans, insurance, scientific agricultural training, grading, packing, branding, marketing among others.
• Each FPO would receive Rs 60 lakh for three years.
• FPOs can be registered using the Companies, Cooperative or Charitable Acts.
• Around 100 - 1000 members can join within three years.
• The agriculture department’s products will be marketed through the ‘Kerala Agro’ brand. 
• The agricultural groups formed now will be converted into FPOs.