The National Co-operative Development Corporation (NCDC) has secured Euro 68.87 million (Rs 600 cr) loan from Deutsche Bank, Germany’s largest bank, for onward lending to co-operatives in the country. An agreement was inked between NCDC and the German bank in this regard in presence of the Union Agriculture Minister, Narendra Singh Tomar in New Delhi. The minister also presided another first, signing of an agreement between the Indian Chamber of Commerce and NCDC to boost farmers linkages with markets.

 

 

The Agriculture Minister said that the Prime Minister has given a new vision to India’s agrarian landscape and to her economic relations with Germany. He added that the Farmers Producer Organisations being set up in the country would be able to access to easier credit and market through the NCDC agreements with ICC and Deutsche Bank. This is for the first time that one of the largest European banks in the world is lending to the NCDC, thus reflecting the confidence of the global financial institution in the Indian development finance institution, particularly at a time when global economic turmoil created by the COVID-19 crisis has made lending a challenging proposition.

 

In a statement, Kaushik Shaparia, CEO & Country Head, Deutsche Bank AG, said that he looked forward to a robust relationship with NCDC in the agri space. While NCDC MD Sundeep Nayak said that the finance would help NCDC to assist farmers make a successful pivot towards sustainable, climate-smart agriculture. “Right from our founding as an organisation since 1963 for co-operatives, we have always strived to support farmers in their journey to achieve sustainable livelihoods,” said the MD. The modern agricultural initiatives of the Government of India are being transformed at grass root level by co-operatives. Speaking at the event, Aditya Bagri, Co-Chair of Indian Chamber of Commerce Committee on Agribusiness and Food Processing said that ICC-NCDC MoU would have a special focus on exports promotion by FPOs.