Dutch bank FMO to invest Rs 120 crore in Sahyadri FPC
Alpen Capital, a Delhi based consultant company is assisting to Sahyadri to get this proposal implemented.
"According to the principles of FMO Bank, there is widespread social interest in such financing. This is called 'Social Impact Fun'," a release from Sahyadri said.
“This financing is expected to give a boost to the agriculture and food processing operations of Sahyadri and reduce wastages and spoilage,” FMO said in a disclosure. Alpen Capital, a Delhi based consultant company is assisting to Sahyadri to get this proposal implemented.
"FPOs, like Sahyadri, provide an effective platform for the provision of farm production inputs and marketing of output; this can immensely enhance farm productivity and increase farm income, thereby contributing to the reduction of poverty. Farmers benefit from economies of scale, technology-driven enhancements, marketing of the products and adequate facilitation to realize higher returns," FMO added.
FMO said the proposed investment will help Sahyadri finance the construction of collection centres for the warehousing and transport of produce. The capital will also help with financing distribution centres with cold storage facilities and a fleet of refrigerated trucks for managing logistics and transport, it added. Sahyadri will also use the funding to set up retail stores in parts of Mumbai, Pune and Nashik, as well as the expansion of its existing production plant.
The team led by Peternal Bogard, Global Head of Agri-Business FMO, visited Sahyadri Company in May 2019 and understood the whole process. The team interacted directly with the farmers associated with Sahyadri. Farmers shared their experiences how they are getting support for production as per the global practices & food security norms. "Member farmers strongly mentioned financial growth happened in their lives due to combining efforts," the release said.
"All the farmers affiliated with Sahyadri are happy. Through the Sahyadri, we saw the progress of small farmers in this cluster," said Bogard.
"Vilas Shinde, Chairman & MD, SFPCL said, "The decision by the FMO to fund a Farmers Producer Company in India should be considered promising and proud moment not only for Sahyadri but entire FPC movement in the country. It is very important for farmers to come together through the FPC and build the collective strength of marginal farmers. Having achieved this, it is easier to acquire the proper markets, technology and funding."