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| Tuesday, 19 October 2004 |
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Prompt action to revive prawn farm industry by Shirajiv Sirimane The Government has decided to take immediate action to revive the prawn farm industry which is facing tremendous hardships. The industry which was lucrative in the past and was a high foreign exchange earner is now facing financial and ecological problems. An Export Development Board, Export and Trade Development Forum noted that farmers numbering over 200 owe eight banks over Rs. 3 billion with interest. The Secretary to the Treasury Dr. P. B. Jayasundera who chaired the meeting said that the government is very concerned about this issue. He subsequently directed the officials to immediately call for a meeting between the prawn farmers and high officials of the eight banks which have lent them the money. President, Consortium for the Development Aquaculture David Edirisinghe said that the bank interest alone which have accumulated over the capital is over Rs. one billion. He appealed to the government to intervene and first stop the banks from taking legal action. He said that if the government could provide some guarantee it could be possible for the banks to stop calling for interest on their loans and also issue fresh loans. Dr. Jayasundera said that similar concessions were provided to rice millers recently. "I think this is something which could be done," he said. He also said that he would also explore the possibility of requesting the banks to issue fresh loans to prawn farmers to overcome their problems. The Secretary said that the best method for the banks to recall their loans is to provide fresh loans to the prawn farmers. "Charging interest from non performing loans would only aggravate problems," he said. The banks said that parties for whom assistance was needed, have to be identified first. However, the banks were not convinced with some enterprises since their loans were far too heavy. A Director of Nuwan Aquaculture (Pvt) Ltd, said that the prawn farming industry was set up in the early 1990's and the projects were well planned. Each project has properly planned since the distribution of clean fresh water is very essential. However, in the latter part of the 1990's there were many unauthorised farmers who set up small projects which damaged the environment conditions. "This was the start of our problems and the Dutch canal from which water was tapped was also polluted and the authorities did very little to clean it, "he said. He said that these problems have now been identified and if the government can iron out the problem with the banks the industry can boom again. "The problem is with production as there is a very strong local and overseas market for the product," he said. |
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