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Over Rs. 730 million for perennial crop cultivation

by Uditha Kumarasinghe

The Agricultural Credit Scheme implemented by the Second Perennial Crop Development Project (SPCDP) of the Agriculture Ministry has granted over Rs.730 million in loans to nearly 1,200 investors to cultivate perennial crops.

The SPCDP assists the development of the perennial crop sector in Sri Lanka excluding tea, rubber and coconut through a concessionary credit scheme and an advisory service.

The perennial crops supported by the projects include fruits, spices and flowers and foliage which have a life span of more than one year, SPCDP Deputy Director (Extension) R.S. Abeysekara told the 'Daily News' yesterday.

From this year, the credit scheme of the project also supports the capital cost of the controlled environment structures in the cultivation of vegetables, he said.

Under the SPCDP, loans ranging from Rs. 50,000 to Rs. 13 million are granted depending on the nature of the investment. At present, an annual rate of 13.1 per cent is charged. There is a 10-year payback period, he said.

Since 1998, the SPCDP is operating in 17 districts. This is a follow on project of the First Perennial Crop Development Project. The SPCDP will end in year 2004. The Asian Development Bank through the Central Bank of Sri Lanka provides financial assistance to the project.

Mr. Abeysekara said activities supported by the credit scheme of the SPCDP includes the cultivation of perennial crops, establishment of perennial crop nurseries, post harvesting processing of perennial crop produce, marketing of perennial crop produce and processed products and the cultivation of perennial crops and grass/fodder, integrated with cattle/goats.

In addition, the SPCDP provides financial assistance to relevant Government institutions to support the availability of quality seeds and planting material and conduct research on perennial crop sector.

Meanwhile the project will assist potential credit borrowers in preparing investment and development proposals. Such proposals are prepared after inspecting the land and discussing the proposed development plan, he added. 

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