DFC- USAID announce $55 mn guarantee programme in India

The US International Development Finance Corporation (DFC) and the United States Agency for International Development (USAID) have jointly decided to sponsor a $55 million credit guarantee programme in India. This announcement was made on September 24, 2021.

Key Points

• This credit guarantee programme seeks to address the economic impact of covid-19.
• It will support the loans to farmer producer organizations, ag-tech companies, and companies that are engaged in clean energy solutions for agriculture sector.
• This initiative will also introduce and support clean technologies for small-holder farmers, with special emphasis on women. This in turn will improve market linkages and increase incomes. It is also having a positive impact on the environment.

Technical Assistance

This Financial support will be complemented by the technical assistance led by the Rabo Foundation. Technical assistance will focus on areas of business management and help in building stronger linkages for markets.

Who are the lenders?

Loans to farmer producer organizations will be provided by three lenders of India namely- Samunnati Financial, Avanti Finance and Maanaveeya.

Why this initiative was launched?

This initiative was launched because, USAID believe that providing farmers with access to cleaner and affordable technology will improve livelihood and climate resilience of the community. Clean technologies also offer a sustainable alternative in order to meet the agricultural demand, to address food insecurity as well as to improve nutritional outcomes. This support initiative will address the health and economic needs of vulnerable farmer communities.

Month: Current Affairs - September, 2021