Dudhsagar Dairy joins hands with SBI

As per the terms of the tie-up, the dairy will work as a business facilitator for SBI while the milk producers of Dudhsagar Dairy will have access to the bank's attractive credit facilities. The SBI expects Rs 14-15 crore loan disbursements from the scheme this year.

Under the scheme, each milk producers' society will appoint a female employee who will conduct identification of the potential customers and activities, collection and preliminary processing of loan applicants, account opening forms including verification of primary information. On the basis of the data, SBI will extend easy credit to milk producers.

While the top brass of the Dudhsagar dairy declined to comment in this regard, SBI has confirmed the development.

"SBI aims to extend Rs 100 crore credit to milk producers in the next three years. Under the scheme, we have signed a memorandum of understanding (MoU) with Dudhsagar Dairy this year. SBI will extend its loan related facilities to milk producers from its nearest branch.

Besides, we will open an account of milk producers and he/ she would be given a debit card, on the lines of Kisan Credit Card, which will facilitate the debit procedure. Dudhsagar Dairy will work as business facilitator for us," Harish Pattnaik, chief general manager, SBI told Business Standard.

"As per the terms of the MoU, Dudhsagar Dairy will work in association with milk societies. Work on the scheme already began," he added.

The scheme is expected to enable milk producers to purchase milch cattle, fodder and machines for extracting milk. They will also be able to set up infrastructure facilities such as cattle sheds, water facilities and godowns for cattle feed.

The ratio of females employed in the district is also expected to increase as each mil k society would appoint a female employee for the purpose of identification.