The National Co-operative Development Corporation (Amendment) Bill, 2012 will allow the Corporation to extend loans to 'producer companies' - entities run by farmers to sell or market their agricultural and related products.
According to the bill, introduced by Minister of State for Agriculture Harish Rawat, the corporation at present can extend loans and grant subsidies to state governments to fund co-operative societies.
Producer companies can play a major role in improving the livelihood of primary producers and boosting growth of rural economy.
"A major impediment being faced by producer companies in its expansion and growth is the lack of availability of institutional support and credit to them...The proposed amendment would enable the corporation to plan, promote and finance programmes for the benefit of the producers through co-operative societies including producer companies," the Statement of Objects and Reasons of the Bill said.
