To finance green house projects in the State, the Punjab Agro Industries Corporation on Thursday signed an agreement with the UCO Bank.
“The initiative, aimed at encouraging agriculture diversification particularly through precision farming related to green house cultivation, will facilitate financing for green houses projects and will provide fillip to crop diversification in the State,” said Punjab Agriculture Minister Jathedar Tota Singh.
He said that the farmers who are engaged in hi-tech farming for growing vegetables have been facing difficulties in getting the high value projects financed from the banks.
Green House projects costs Rs35-40 lakh per acre and banks are generally hesitant in financing such high value farming operations, he said adding that this was also the case in organic farming therefore as banks are resistant in financing such projects and farmers undertaking organic farming are facing the
problems.
As per the agreement, UCO Bank will work closely and provide requisite finance to farmers through its 182 branches in the State.
Singh said that Punjab Government shall extend 50 per cent subsidy on the construction of green houses under National Horticulture Mission and 300 farmers have already set up high tech green houses in the State.
Punjab Agro Industries Corporation’s managing director KS Pannu said that Punjab Agri Export Corporation (PAGREXCO), a subsidiary of PAIC, is engaged in encouraging and organising farmers to undertake green house cultivation and to forge backward and forward linkages in the production process.
UCO Bank general manager VK Shrivastava informed that the Bank, under the tie-up arrangement, shall provide term loan and working capital to the farmers for setting up of Green Houses and adoption of organic farming on commercial scale.