On April 13, 2021, National Cooperative Development Corporation (NCDC) made its 1st deal with Deutsche Bank AG, Germany’s largest bank to avail a loan for €68.87 million (around Rs 600 crore) to finance the development work of cooperatives across India.
- NCDC also signed an MoU with Indian Chamber of Commerce (ICC) headquartered in Kolkata to support Farmer Producer Organisations (FPOs) to sell their product. Both the agreements were presided over by the Agriculture minister Narendra Singh Tomar.
Purpose: The agreements of NCDC with Deutsche Bank and ICC, will lead the Farmers and FPOs to obtain easier credit and market.
About NCDC’s Activities:
- The fund raised is to support NCDC’s activities around FPOs as NCDC is the lead agency along with NABARD and Small Farmer Agri-Business Consortium to set up the new 10,000 FPOs over the next few years.
- Since 2014, NCDC has extended loans up to 16 billion Euros (~₹1,42,880 crore) with zero NPA’s (Non Performing Assets) to co-operatives of various sizes and 94 per cent of farmers are part of at least one co-operative.
- German is one of the top 10 global trade partners of India and also being India’s largest trading partner in Europe.
- This is the first highest lending by one of the largest European banks to the NCDC.
Recent Related News:
On March 21, 2021, Uttar Pradesh (UP) Chief Minister (CM) Yogi Adityanath launched UPFPO (Uttar Pradesh Farmer Producer Organization) Shakti Portal as part of the Kisan Kalyan Mission in Gorakhpur, UP. It is the 1st of its kind in India.
About National Cooperative Development Corporation (NCDC):
Establishment – 1963 as a development finance statutory institution under the Ministry of Agriculture and Farmers Welfare
Managing Director– Sundeep Kumar Nayak
Head Office– New Delhi
About Deutsche Bank AG:
Establishment – 1870
Headquarters – Frankfurt, Germany
CEO -Christian Sewing