Mangalore, June 30
STATE Bank of India (SBI) and Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd are jointly launching the `produce loan' facility for the benefit of arecanut growers in the region.
Addressing newspersons here on Thursday, the Campco President, Mr L.N. Kudoor, said the members of Campco would get this facility at an interest rate of 8.5 per cent.
Stating that growers are forced to sell arecanut in the market due to volatility in the price of the commodity, he said the new facility would protect the interest of growers and help them in getting good value for their commodity. Campco members can avail themselves of the `produce loan' by pledging the produce at an interest rate of 8.5 per cent. The member will get up to 60 per cent of the value of the commodity. Mr Kudoor said minimum formalities are required for availing the loan. The member could pledge the commodity for three months to avail the loan and can renew it for another three months, if the need arise. The facility will be formally launched at Vittal in Dakshina Kannada district on July 4.
Dr V. Eswaran, Regional Manager of SBI, Mangalore, who was present at the news conference, said the bank is launching this facility for arecanut growers to commemorate its 200th year celebration.