RELIEF FOR FARMERS: K. Ramakrishnan, CMD, Andhra Bank exchanging files with A. Hari Prasad, CMD, National Collateral Management Services in Hyderabad on Thursday. - Photo: P.V. Sivakumar

HYDERABAD: In a move which will provide a major relief to ryots in the State, Andhra Bank has signed an MoU with M/s National Collateral Management Services Limited, a risk management company, for providing finance to farmers against their produce.

In the wake of the MoU, the bank will extend loans to farmers based on the certification of quality, quantity, grading, valuation and against warehouse receipts issued by NCMSL.

This enables farmers to store their agricultural produce at warehouse enrolled by the company and sell their produce when the prices are remunerative.

The MoU was signed by A. L. Nageswar Rao (GM, Andhra Bank) and Mukund Annigeri ( Chief Business Officer, NCMSL).

Chairman and Managing Director of the bank, K. Ramakrishnan, expressed the hope that the agreement would benefit both partners and farming community.

Distress sale

Pointing out that distress sale was one of the reasons for the plight of farmers in the country, he said to mitigate their plight the bank had earlier introduced `Produce (Marketing) Loans Scheme' under which farmers were provided finance against their produce.

During the current financial year, the bank had set a target of extending agriculture credit to the tune of Rs.4,200 crores and Rs.3,473 crores was disbursed by September-end.

Managing director, NCMSL, A.Hari Prasad, said that a target of Rs.800 crores had been set by the company for lending by various banks to farmers in the country for the ensuing season.

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