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Wednesday, April 23, 2008 - 08.40 GMT |
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Agro Livestock Development Loan Scheme |
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With a view to enhancing local liquid milk
production, milk and milk based products and
promoting agricultural crop processing industries
the Central Bank of Sri Lanka (CBSL), in association
with the Government of Sri Lanka (GOSL), has
launched a special credit programme effective April
2008.
A total of Rs.5000 million at a concessionary rate
of interest is expected to be disbursed under the
scheme to small scale dairy farmers, liquid milk
processing industries and agricultural crop
processors. The credit scheme has been introduced as
announced in the Budget 2008.
The CBSL in association with lending banks will make
arrangements for Forward Sales Contracts (FSCs)
between the dairy farmers and milk collecting
companies to ensure a stable market with a
remunerative price for liquid milk.
The loan limits extend from Rs.50, 000 to Rs.400,
000 per borrower at an interest rate of 12 percent
per annum. The maximum repayment period is 5 years.
In addition to the above, liquid milk processing
industries are also eligible to receive bank loans
under the credit programme up to a maximum of Rs.300
million per industry. Interest for such loans will
be 14 percent per annum and a maximum of 5 years is
available for repayment. Such an industry is
required to make an arrangement with 2,000 to 10,000
dairy farmers to purchase liquid milk under FSCs.
Further, agro-based industries are also eligible to
receive loans at 14 percent per annum under the
credit programme up to a maximum limit of Rs.300
million per borrower. Such industries are required
to enter into FSCs with 1,000 to 10,000 farmers to
purchase their produce. The CBSL and lending banks
will assist the industries to enter into FSCs
with farmers.
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