Banking
NDB helps boost seed-paddy production to support local farmers
View(s):Pulathisi Praja Sanwardena Company established in 2005, is a pioneering enterprise set up by aspiring men and women in 49 farming communities in the Polonnaruwa district; with the objective of producing the much needed seed paddy and establishing a fair price for seed paddy within the market. It is also a livelihood development programme which aims to enhance the economic stature of each of the community members.
The major revenue generating commercial activities of PulathisiPrajaSanwardena Companyinclude agricultural input sales, seed paddy production and sales, establishing market linkages as well as conducting training programmes to educate the farmers on ways to produce high quality seed paddy. The company also acts as a facilitator indeveloping linkages between farmers and private sectoragro- businesses. Further,PulathisiPrajaSanwardena Company provides a major portion of the seed paddy collected to the Food and Agriculture Organization (FAO), a NGO which distributes seed paddy free of charge to farmers in the North and East regions; supporting to re-instating the poverty stricken farming communities in these areas.
With seven years of industry experience, today PulathisiPrajaSanwardena Company is a registered “Seed Paddy Handler” of the department of agriculture and makes a significant contribution to the country’s seed paddy cultivation, processing and marketing. The company is now able to provide about 9000 Bushels of seed paddy to the market per each season.
Recently, NDB came forward to assist the company by a granting a micro loan facility to further expand the company’s seed paddy enterprise. With this funding the company would now be able to pay by cash for the purchase of seed paddy rather than buying on credit, making a higher margin while enjoying a lower whole sale rate. The facility arranged through NDB’s “Diviaruna” Microfinance livelihood development scheme, is expected to help the company encourage farmers to produce more seed paddy as the company now has a higher capacity to purchase more and create a better market for the farmers. Thus the facility is expected to indirectly boost the seed paddy production during the forthcoming cultivation seasons.
Taking into consideration the importance of SME’s to the national economy, NDB has dedicated over 30 years of customized financial expertise to this sector.NDB supports the SMEs through advanced training, long term loans and other low cost credit facilities coupled with the expertise of Professional Financial Advisors that assess the needs of customers, evaluate related risks, structure finance, and monitor and supervise the credit facilities. Whilst providing a range of dedicated financial solutions to empower the SME sector, NDB conducts comprehensive SME workshops with focus on educating and developing the skills, knowledge and competencies of the entrepreneurs across the country.Through setting up of regional SME centres The Bank aims to operationalize the localized economic drivers and partner the entrepreneurs in the area in their endeavours to maximize on regional business opportunities. NDB also promotes financial inclusion of the lower end of the industry through its DiviAruna Micro finance scheme.
Funding of PulathisiPrajaSanwardena Company is also being facilitated through the DiviAruna scheme, which is a community enrichment programme designed for those who have no access or knowledge to financing and is done in a bid to bring together a group of borrowers and encourage their participation.
The launch of the effective programme called DiviAruna in 2010, was taken across the country and has to date supported over 600 families. The effectiveness of the programme has enabled many small time investment customers to migrate over to the SME sector.
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