CFC funds underutilized due to lack of awareness

by Surekha Galagoda

The Common Fund for Commodities (CFC) has supported 12 projects in Sri Lanka but the lack of awareness among the private sector about the CFC is the reason the funds are being underutilised, said Managing Director of CFC Ali Mchumo.

Mchumo was here on a four-day visit to observe the on-going CFC financed projects and hold discussions with various Ministers and officials on new projects. He said that it is increasingly important to disseminate information about CFC projects as this is a fund solely established to promote commodities.

CFC is currently engaged in several projects in Sri Lanka including a pilot project facilitating coir production and an integrated pest management project for coconuts.

Projects in the planning stage include a rubber wood technology project, bamboo shoot production facility and export of fruits from Asia. Under the project of exporting fruits from Asia it is planned to improve the competitiveness of fruits under a US $ 5 million project.

Earlier CFC funded projects in the sectors of tea and fish. In addition, CFC covers other commodity sectors that could be of interest to Sri Lanka including, hard fibre, jute, citrus, fruits, bamboo and fish. Mchumo met the Minister of Plantation Industries and the Minister of Fisheries and officials of the Commerce Department.

Mchumo said that CFC focuses on commodities as a vehicle for reducing poverty and we believe that the benefits should be reaped by everybody including farmers in the developing countries. He said the government and the private sector can forward project proposals and we will finance them depending on the viability of the project. CFC funds up to US$ 5 million per project.

The Common Fund for Commodities is an inter-governmental financial institution established within the framework of the United Nations. The Fund's specific mandate is to support developing countries that are commodity dependent to improve and diversify commodities production and trade.

The Fund's projects typically have a market development and poverty alleviation orientation; and through a variety of project-based initiatives, the Fund places a high premium on development of commodities-based economies upon which the producers and exporters depend for their livelihoods.

The Fund was set up in 1980 and has 106 member countries and three institutional members. CFC has funded over 200 projects around the world.