Ryots’ empowerment corporation comes into being in AP

The entity, headquartered in Vijayawada, will be a one-stop shop for all activities

The Andhra Pradesh government on Saturday issued orders for the establishment of Rythu Sadhikara Samstha (Farmers’ Empowerment Corporation) and ordered release of Rs. 5,000 crore to the new entity to implement farm sector debt redemption policy.

The Commissioner and Director of Agriculture has been designated as Nodal Officer to coordinate and ensure that the corporation starts its effective operations on or before October 22. It mentioned that Rs. 5,000 crore to be released for the corporation is for onward transmission to eligible banks/ farmers in accordance with the rules, regulations procedures to be approved by the government.

The corporation with headquarters in Vijayawada would be located in the Department of Agriculture as the one-stop shop for all farmer development, welfare and empowerment activities. It would be the principal agency of the AP government to manage farm sector debt redemption policies and programmes. To ensure agricultural development receives a boost via the Primary Sector Mission, the corporation would be assigned a central role in its implementation.

Authorised capital

The corporation would be a wholly owned enterprise of the government of Andhra Pradesh and registered with an authorised capital of Rs. 1 crore, consisting of 10 lakh shares of Rs.10 each.

The GO said the government accords permission to the corporation to borrow and / or receive funds or any other financial instrument from banks/ financial institutions and the government for the purpose of farmers’ empowerment. The objectives of the corporation include providing an integrated empowered institution that would be responsible for planning, implementation and monitoring of welfare, development, capacity enhancement, and other activities that empower farmers to achieve higher productivity and value addition to the farming sector. It would take up various measures and activities, including financial support, technical assistance, technology transfer, agricultural debt redemption and such other interventions that would empower farmers in diversification and intensification of agriculture, horticulture, sericulture, livestock, fisheries, forestry, food processing and allied sectors.

The corporation, among others, seeks to mobilise resources from banks, financial institutions, funds, public or government to realise its objectives.