Loans for dairy farmers
Amidst the extensive debate on the safety of powdered milk and
ambitious plans of the government to achieve self-sufficiency in milk,
the Central Bank of Sri Lanka (CBSL) last week launched a loan scheme
for commercial scale dairy producers.
 The Regional Development Department of CBSL launched the 'Commercial
Scale Dairy Development Loan Scheme (CSDDLS)' at a ceremony at
Salgastenna Dairy Farm at Indigolla, Nittambuwa. Minister of Economic
Development Basil Rajapaksa and CBSL Governor Ajith Nivard Cabraal and
officials of the Ministry and Central Bank were present.Milk is an
important ingredient in one's day-to-day food consumption as it
alleviates nutritional poverty in all age groups especially among
pre-school children and pregnant mothers. In addition, self-sufficiency
in milk serves to resolve issues of food security. The food security of
milk means the availability of standard liquid milk conveniently, at all
times and at an affordable price.
To achieve this goal, it is necessary for the Sri Lankan dairy
industry to transform itself from a small-holder dominated livestock
industry to a viable, medium-to-large scale, commercially-oriented
industry involving the private sector.
The provision of credit facilities under CSDDLS at a concessionary
rate of interest will improve productivity among dairy farmers and help
convert small-scale dairy farmers into commercial-scale dairy farmers
facilitating the setting up of milk-based industries.
Provision of credit facilities will also encourage the use of new
technology and mechanised systems paving the way for a low cost and
sustainable dairy industry.
It will facilitate using abandoned land for the dairy industry while
generating new employment opportunities in milk production and
milk-based industries.
Individuals, groups of individuals or registered companies engaged in
large-scale dairy farming or milk-based industries are eligible to
obtain loan facilities under CSDDLS while the capabilities of Regional
Plantation Companies will also be considered favourably, a CBSL official
said.
Prospective borrowers should have a business plan acceptable to
Participating Financial Institutions (PFIs) of CSDDLS and provide a
project appraisal report or any other document requested by the PFIs.
They should have knowledge, proficiency and management skills to
maintain dairy related projects profitably and should meet the
collateral required by the PFI.
CSDDLS is a broadbased loan scheme that covers many requirements in
the industry.
Finance under CSDDLS will be available to buy cows (for a farm with
at least 25 cows), constructing cattle sheds, buildings, irrigation
systems (drip irrigation, sprinkler technology and laying of pipelines),
construction of wells or agro-wells and for farm improvements.
Fodder production and grass cultivation, farm development,
construction of bio-gas units, expansion of the existing farm, purchase
of machinery and equipment such as tractors, trailers, water pumps,
cream separators, milking machines, ailment mixtures and grass cutters.
Freezer trucks and bowsers for milk transportation, cooling room
facilities, freezing and storage facilities to preserve milk and
milk-based products and any other innovative methods for improved of
production of dairy products.
The PFIs of the CSDDLS are Bank of Ceylon, People's Bank, Commercial
Bank of Ceylon, Hatton National Bank, Sampath Bank, Seylan Bank,
Pradesheeya Sanwardhana Bank, Sanasa Development Bank, National
Development Bank, DFCC Bank and Lankaputhra Development Bank.
This scheme will be operative islandwide. The maximum loan facility
is Rs. 25 million and the rate of interest 8 percent per annum under the
scheme. |
