23 January 2017 Current Affairs: Dairy firm Kwality Ltd has signed an agreement with Bank of Baroda for providing Rs 4,000 crore loans to the former's one lakh farmers from whom the company procures milk.
The company has a network of about 3.25 lakh across about 4,500 villages in Uttar Pradesh, Haryana and Rajasthan which are amongst the largest milk producing states of India.
Kwality Ltd would cover the remaining farmers in subsequent phases over a period of time.
The scheme is aimed at providing financial assistance to improve socio-economic lives of farmers and steer them towards digitisation.
The Bank of Baroda would get a readily available customer base for the priority sector lending, he said, adding that bank would also get operational support from the company in identification of farmers and payment management system.
Kwality plans to roll out 10-12 variants of high margin value-added products such as flavoured milk, paneer, cheese, UHT, cream in tetra packs, table-butter, yoghurts, amongst others over next 12-18 months. It has six milk processing plants in north India.