With a view to promote organic cotton cultivation in India, private lender YES Bank declares to partner with a farmer-owned private firm, Zameen Organic.
Yes Bank Group President, Corporate Finance and Development Banking, Somak Ghosh informed that the bank will lend the company a sum of Rs 6 crore at an interest rate of 13% for 2008-09.
"We are going ahead with this tie up because of this business model abide by our responsible banking framework and also there is a growing global market for organic cotton," Ghosh said.
The size of the organic and fair-trade market at the international level is estimated to be at $3.3 million and it is likely to increase at 40% per annum.
Also the bank is extending assistance to organizations working for organic cultivation of coffee, tea and pesticide-free vegetables.
Zameen Organics CEO Gijs Spoor said, "Currently, organic cotton cultivation is less than one percent across the globe. There is immense scope for organic cotton cultivation in India as the country is the world's second largest fibre crop producer."
Zameen Organics is a Hyderabad-based company and is owned by 25 farmers' organizations that targets to provide processing and marketing linkage between organic farmers and global apparel brands.
Presently Zameen is engaged with more than 6,500 small farmers producing organic cotton in Adilabad district of Andhra Pradesh and Vidharbha region of Maharastra.