Loans for 57,000 farmer families under IFAD program

• Amount increased from Rs. 300,000 to Rs. 500,000 with Cabinet approval 
• Loans also available for machinery purchases and market promotions 

Cabinet approval has been given to increase loans to 57,000 farmer families, covered by a $105 million program between the International Fund for Agricultural Development (IFAD) and the Government. The ongoing IFAD program was to be completed in June 2023 but a Cabinet decision this week has raised the loans to be given under the program from Rs. 300,000 to Rs. 500,000. 

The project is aimed at 57,000 families, including 4,000 families in the Mahaweli region, and will be implemented as a Public, Private and Producer Partnership (PPPPs) program, with the contribution of State, private and agricultural producers, the Government Information Department said.

“Approval of the Cabinet of Ministers was granted to increase the higher limit of the adjustment loan grant from Rs. 300,000 to Rs. 500,000, which is for the project beneficiaries,” the statement said. In addition, under the same program adjustment, loan facilities to provide funds to a maximum of Rs. 1.8 million for obtaining equipment or services required for promoting markets or enterprise activities was approved. 

Market promotion activities can benefit from loans of up to Rs. 9 million with an annual loan interest of 10% for procurement of machinery for those promoters under the program.