Nafed: Cabinet raises guarantee up to Rs1900 cr

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved the regularization and extension of Govt. Guarantee provided to lender Bank for providing credit limit to National Agricultural Cooperative Marketing Federation of India (NAFED).

The credit limit goes to Rs.19,000 crore from earlier Rs.9,500 crore for undertaking procurement operation of pulses and oilseeds under Price Support Scheme (PSS) and to Small Farmers Agri-Business Consortium (SFAC) for Rs. 45 crore for meeting their existing liability and settlement of extant claims.

These Government Guarantees are provided for a period of five years i.e. till 2021-22 by Govt. of India and with waiver of 1% Government Guarantee fee.

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