Proagro launches micro-credit scheme for farmers

Hyderabad, March 29 | Updated: Mar 30 2006, 05:30am hrs
Proagro Seed Co, a company of Bayer Crop Science group engaged in R&D, production and marketing of high quality hybrid seeds, has initiated a micro-credit scheme in Andhra Pradesh.

The company has signed an MoU with State Bank of India (SBI) to provide seed growers including cottonseed growers, access to lower interest rate credit, instead of the high rates charged by the local money lenders. The company believes that this might reduce the financial burden and reduce child labour.

Clive Pegg, MD of Proagro said: Child labour in cottonseed production is a deep-rooted, socio-economic problem that has developed in the last three decades in this industry. The financial distress of many rural families has contributed a great deal in intensifying this problem. This micro-credit program, for seed growers, will provide timely and organised financial support and significantly reduce grower borrowing costs. It can also encourage thegrowers to discontinue use of child labour.