NABARD’s Support to Producer Organizations
Indian farming is characterized by a large number of marginal and small holders (almost 85 per cent) who are exposed to multiple risks and vulnerability. The fragmented and dispersed nature of farm holding poses major problems for on-farm productivity and the resultant farm incomes, especially in the rain fed areas. The immediate recourse for the marginal and small farmers to tide over the state of vulnerability and deprivation is to scale up the operations and have improved access to technologies, credit and market through formation of Producer Collectives / Organizations. Govt. of India has considered farm aggregation and collectivization of farm produce through organizing Producer Organizations as a means to boost the agricultural growth during the 12th Plan period. NABARD has been extending financial assistance to Producer Organizations by creating “Producers Organization Development Fund (PODF) out of its surplus in the year 2011.