In a bid to help farmers set up cost effective processing units, the Karnataka Vikas Grameena Bank (KVGB) has signed a Memorandum of Understanding (MoU) with Our Food Pvt. Ltd., Visakhapatnam.

According to the MOU signed recently, the vendor will ensure supply, delivery and installation of high quality, standardised and branded equipment/machinery as per the requirement of the farmer/farmer franchisee, and also purchase of processed products. The vendors also ensure regular recovery towards such loan accounts and also support the bank in end utilisation of the loan, a press release said.

The MOU was signed in the presence of bank chairman P. Gopi Krishna, general manager Chandrashekhar D. Moro, and managing director of M/s Our Food Pvt. Ltd. Bala Reddy.

Mr. Krishna said there was need for having MoUs with big companies for technology and marketing and observed that lack of such agreements will create problems of marketing the agriculture produce.

Mr. Krishna said that through bank loan the firm would not only extend assistance in setting up processing units but also in procuring the processed materials and sell it to bulk buyers.

Mr. Reddy said the company would motivate unemployed educated youths to establish processing units as per local requirements. Under the MOU, the company would ensure to the farmers 20% and 25% more than the market rate.