Tamil Nad

Three-pronged strategy to help FPCs

The Mezzanine Capital Assistance (MCA), disbursed to 22 farmers producers’ companies (FPCs) on Monday, forms part of the State government’s three-pronged strategy to cover more than 10 lakh farmers of 1,000 FPCs.

The rationale behind the MCA is to augment capital contribution of the FPC members, considering that their entities are in initial years.

The member’s margin money will get enhanced so that they carry out various business activities. Each FPC can have up to ₹ 10 lakh at a nominal rate of 4% per annum. The principal is repayable after 5 years. The government has earmarked ₹ 50 crore for this purpose.

The other two components are the Credit Guarantee Scheme (CGS) to access credit and Revolving Fund Support (RFS) to obtain concessional credit. The government has set apart another ₹ 50 crore for the CGS and ₹ 166.7 crore for the RFS.

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