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New loan scheme for developing agriculture

by Uditha Kumarasinghe

The Agriculture Ministry has implemented a new credit scheme named "Aruna Agriculture Loan Scheme" to assist cultivators by infusing modern technology.

The loan scheme also seeks to effectively face challenges in the competitive commercial sector.

Agriculture, Livestock and Samurdhi Minister S.B. Dissanayake told a press conference on Monday that the Ministry has already commenced this agricultural credit scheme in 17 districts with the assistance of the Asian Development Bank and the Central Bank. The Ministry will shortly introduce this scheme to the North-East.

The credit scheme 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. Loans ranging from Rs.50,000 to Rs.13 million are granted depending on the nature of the investment while a 12.08 per cent annual interest rate is charged. There is a 10-year payback period, he said.

The Minister said this credit scheme is introduced to replace the Second Perennial Crop Development Project which commenced in 1998 by giving a new dimension to the existing project. Perennial crops supported by the projects include fruits, spices and flowers and foliage which have a life span of more than one year.

Dissanayake said the Ministry hopes to create an awareness among youth who are interested in agriculture.

"This would be a good opportunity for youth to invent new agriculture, based industries. Hatton National Bank, Commercial Bank, Sampath Bank, Bank of Ceylon, DFCC Bank, National Development Bank, Kandurata Development Bank and Ruhunu Development Bank will be the credit facilitators of this scheme."

He 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.

Funds will be provided to government institutions to support the availability of quality seeds and planting material and conduct research on perennial crops.

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, the Minister added. 

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