Oceanaa, engaged in farming and processing of shrimps, has signed a memorandum of understanding with Indian Overseas Bank (IOB) for doing shrimp culture under contract farming. Farmers, having a minimum of one hectare with licence from Coastal Aquaculture Authority, will be identified by Oceanaa and loans will be provided by Indian Overseas Bank.

Addressing presspersons here on Thursday, A. Joseph, Chairman and Managing Director of Oceanaa said the company would provide seed, feed, aqua health products and free technical service to shrimp farmers and buyback the shrimps at market prices prevailing at the time of harvest. The shrimps will be processed at Oceanaa unit at Marakkanam (Tamil Nadu) and sold in domestic and international markets.

The total cost of cultivation per hectare will be Rs. 4.79 lakh.

The farmers are required to bring in 15 per cent margin money and the balance funding will be from IOB in the form of cash credit, repayable in six months.

Mr. Joseph Raj said, shrimp farming under the contract farming arrangement, will be highly profitable, as a farmer with one hectare of shrimp farm, will reap a surplus of Rs. 3.50 lakh after paying back the loan amount, in six months.

The Oceanaa group has a turnover of more than Rs. 450 crore with shrimp farming accounting for Rs. 35 crore.

The insurance facility will be extended by New India Assurance Company providing safety net to farmers.

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