MoU inked for special loan scheme for rubber smallholders

Sandasen Marasinghe

The Thurusaviya Fund and Bank of Ceylon (BOC) entered a memorandum of understanding (MoU) to introduce a special loan scheme for the first time for around 133,000 rubber smallholders to increase rubber production and uplift rubber smallholders' economic and social status.

Thurusaviya Fund chairman Suranga Hidelaarachchi and Thurusaviya Fund director Kumari Wimalasuriya signed the MoU on behalf of the Thurusaviya Fund while Deputy General Manager H M Mudiyanse and Assistant General Manager W A C Thissera signed on behalf of BOC.

The MoU was signed at a ceremony at the Plantation Industries Ministry.

Plantation Industries Minister Mahinda Samarasinghe said allocations have been made to commence rubber cultivation in Mullaitivu, Kilinochchi and Vavuniya at the beginning of next year.

He said 300 hectares each in Mullaitivu and Vavuniya have been identified for the project.

“Nurseries to provide saplings for the projects have commenced. Measures will be taken to increase cultivation in these areas in 2014,” the minister said.

Samarasinghe said 133,000 rubber smallholders in the country contribute to 70 percent of the rubber production and they bring around Rs 1,100 million foreign exchange to the country.

He said 150,000 metric tons of rubber is produced annually while the national requirement is around 170,000 metric tons.

President Mahinda Rajapaksa recognised the importance of these cultivators and provided them a Rs 175,000 grant for re-cultivation and cultivation of rubber.

“The government has not reduced the relief provided to cultivators though the price of rubber has been increased,” he said.

Hidelaarachchi and Bank of Ceylon chairman Dr Gamini Wickramasinghe also spoke.