Financial Daily from THE HINDU group of publications
Saturday, Dec 10, 2005
Financial Daily from THE HINDU group of publications Saturday, Dec 10, 2005 |
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Money & Banking
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Public Sector Banks Agri-Biz & Commodities - Farm credit Canara Bank in pact with Dakshina Kannada milk co-op Our Bureau
Mangalore , Dec. 9 THE Mangalore Circle of Canara Bank has entered into an agreement with the Dakshina Kannada Cooperative Milk Producers' Union Ltd to sanction dairy loans to the members of the union at an interest rate of eight per cent. Addressing presspersons at the circle office here on Friday, Mr R.K. Madhukar, General Manager, said that the bank proposes to sanction a minimum of Rs 5 crore under the dairy loan scheme during the current financial year. The dairy loan scheme includes loan towards the purchase of cattle, construction of cowshed, purchase of cattle feed and milking equipment and other working capital requirements. Under the agreement, the bank has fixed an attractive rate of interest (eight per cent) for the members of the union, he said. Otherwise the rate of interest for the dairy loan will be in the range of 10 to 11 per cent. Mr Madhukar said that the milk producers' cooperative societies and bank branches would identify the prospective borrower. The borrower will have to sell milk on daily basis to the society. The society, which will deduct a minimum of 50 per cent of the sale amount, will remit it to the bank branch where the borrower has availed himself of the dairy loan. Stating that the success of dairying is dependant on the marketing arrangement prevailing in the area, he said the Dakshina Kannada Cooperative Milk Producers' Union is working well in Udupi and Dakshina Kannada districts. The union has a network of 485 milk producers' cooperative societies with 36,000 members. Speaking on the occasion, Dr M.N. Venkataramu, Managing Director of Dakshina Kannada Cooperative Milk Producers' Union Ltd, said that the union wants to induct around 3,500 new cross-breed cows in Dakshina Kannada and Udupi districts during the year. In the first phase, the bank and the union want to disburse dairy loans to around 1,500 members of the union. He said that the union produces 1.94 lakh litres of milk a day.
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