CB muscle for fresh milk industry

The Central Bank of Sri Lanka has initiated several projects to promote local fresh milk processing industry. Under these programs, soft loans for agriculture and animal husbandry have been introduced to help dairy farmers engaged in milk production and milk related industries.

Central Bank Regional Development Department Additional Director M. S. K. Dharmawardhana said 7,000 dairy farmers have benefited by these programs and it is intended to establish 20,000 milch cows control units throughout the island.

The Additional Director further said that the Central Bank is expected to release Rs 5,000 million to Commercial Banks for this purpose.

Loans will be given on reduced interest from the deposits of State and private banks. Under this project small scale farmers will get the maximum of Rs 400,000 at the annual interest of eight percent and maximum of Rs 300 million of 14 percent annual interest for milk related industries. Loss of interest incurred by the banks will be reimbursed by the Government.

A maximum of five year period will be granted to repay this loan, if the monthly instalment is not paid due to any unforeseen circumstances, the farmer will be given a grace period of six months to pay only the interest.

This loan could be used to put up cattle shed factory, bio gas unit, buying cows, buying cattle food and drugs, agricultural machineries, putting up stores, chilling room and transport facilities. Dairy farmers will be selected for these loan schemes with the recommendation of the veterinary surgeons under the National Livestock Development Ministry.

This officer will be remunerated with a special allowance and other fringe benefits for the service. Dairy farmers who obtain the loan under this scheme will be given a hand book named "Control of milch cows" free of charge by the Central Bank of Sri Lanka, to administer the farm.