New loans scheme to increase dairies, reach self-sufficiency in milk
View(s):The Government on Thursday announced a new loan scheme to support dairy entrepreneurs aimed at fulfilling the Mahinda Chinthana (policy) of self-sufficiency in milk and milk products
The move comes in the backdrop of local business interests pushing for a ban or restriction on milk powder imports while increasing local production, and a more-than six months’ long dispute over alleged contamination of imported milk products.The ‘Commercial Scale Dairy Development Loan Scheme (CSDDLS)’ will be run by the Central Bank (CB) and the loans disbursed through local banks — the Bank of Ceylon, People’s Bank, Commercial Bank of Ceylon, Hatton National Bank, Sampath Bank, Seylan Bank, Pradesheeya Sanwardhana Bank, Sanasa Development Bank, National Development Bank, DFCC Bank, and Lankaputhra Development Bank.
The island-wide scheme allows a maximum loan facility of Rs. 25 million at 8 per cent interest per annum.
Sri Lanka spent over US$300 million last year on imported milk and milk products as the local industry is capable of supplying only one third of the country’s requirement of milk needs
“With the escalation of milk powder prices in the world market, this expenditure will surge further if necessary measures are not taken to increase local milk production,” the CB said in a statement.
The CB also strongly rejected the view expressed by group of eminent doctors two weeks back in a widely, publicized media conference, that milk is not essential in the daily food intake.
“Milk is an important ingredient in one’s day to day food consumption as it has the capacity of alleviating nutritional poverty in all age groups especially among pre-school children and pregnant mothers. In addition, milk self- sufficiency serves to resolve the issues of food security,” the CB statement said.
It said the food security of milk means availability of standard liquid milk conveniently, at all times, at an affordable price. To achieve this goal, it is necessary that Sri Lankan dairy industry must transform from small-holder dominated livestock industry to a viable, medium-to-large scale, commercially oriented private sector engaged dairy industry, it said.
The new loan scheme covers the purchase of cows (for a farm with at least 25 cows); establishment of cattle sheds, buildings, irrigation systems (drip irrigation/sprinkler technology/laying of pipelines), construction of wells or agro-wells to make farm improvements; fodder production and grass cultivation; farm development; construction of bio-gas units; expansion of existing farm; purchase of machinery and equipment such as tractors, trailers, water pumps, cream separators, milking machines, ailment mixtures and grass choppers; freezer trucks and bowsers for milk transportation, cooling room facilities, freezing and storage facilities to preserve milk and milk based products.
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