Bagma-Based FPO Featured in IIM Lucknow Study on Credit Linkage Initiatives by NABARD

Agartala, Apr 12, 2025, By Our Correspondent

Bagma Agri Producer Company Limited (BAPCL), a Farmers Producer Organisation (FPO) based in Bagma, Tripura, has been selected as one of the twenty model FPOs across India for an in-depth study conducted by the Indian Institute of Management (IIM) Lucknow. The study, sponsored by the National Bank for Agriculture and Rural Development (NABARD), focuses on FPO credit linkage models and capital arrangements used by such organizations across the country. The research team, led by Prof. Kushankur Dey and Sourav Pore, Research Manager, highlighted the importance of strengthening policy frameworks to support FPOs. According to the team, policy interventions such as streamlined appraisal processes and provision for working capital pledges are crucial to enhancing the effectiveness of credit support for FPOs.BAPCL, which operates under the support of NABARD’s Tripura Regional Office, utilizes three primary capital arrangements — working capital, term loans, and Cash Credit Loans to drive its operations. These financial tools have helped the organization carry out a range of agricultural and allied activities, including input support, production, value addition through packaging, project-based initiatives like seed villages and fisheries, and financial literacy programs.Punjab National Bank (PNB) and Tripura Grameen Bank have played pivotal roles in extending credit facilities to BAPCL, enabling it to strengthen its integrated agri-business model. This model has proven especially relevant for Tripura, where smallholder farmers benefit from collective initiatives and institutional support.Tripura is among the selected states including Rajasthan, Madhya Pradesh, Haryana, Uttar Pradesh, NCR Delhi, Gujarat, West Bengal, and other North-Eastern states featured in the pan-India study aimed at assessing the effectiveness of credit linkage in improving FPO sustainability and farmer income.During a roundtable meeting held today, representatives from NABARD, Punjab National Bank, the Board of Directors of BAPCL, and various other stakeholders emphasized the immense potential of Tripura's agricultural sector. They underscored the need for focused policy implementation to harness the opportunities available in the state for the benefit of farmers.“The integrated model followed by BAPCL is a replicable example for other states, especially in regions with similar agri-economic contexts,” said a resource person present at the meeting. “Tripura may be small in size, but the opportunities in the agricultural sector are vast and promising.”The ongoing efforts by BAPCL and the insights from the IIM Lucknow study are expected to contribute significantly to policy reforms and enhanced credit access for FPOs across India.