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Punjab Agro Industries Corporation (PAIC) on Thursday signed an agreement with UCO Bank to encourage agriculture diversification, particularly through precision farming related to greenhouse cultivation. Agriculture Minister Jathedar Tota Singh said, "Punjab government has taken this initiative to facilitate financing for the setting up of greenhouses by farmers in the state."
He said greenhouse farmers had been facing difficulties in getting high-value projects financed by banks. Establishment of greenhouses on one acre costs Rs 35-40 lakh and banks are generally hesitant to finance such high-value farming operations.He said this was also the case in organic farming.
To tackle the paucity of financing such projects and to promote agriculture diversification in the state, Punjab Agro and UCO Bank have decided to work closely and provide requisite finance to farmers through 182 branches of UCO Bank in the state. He added the state will extend 50 per cent subsidy on construction of greenhouses under the National Horticulture Mission and 300 farmers have already setup high-tech greenhouses in the state.
