Karnataka - Mangalore   

DKMUL, Canara Bank tie up for loan scheme

Staff Correspondent

Under the scheme, loans will be given to dairy farmers at an interest of 8 per cent per annum

JOINT VENTURE: R.K. Madhukar, General Manager, Canara Bank Mangalore Circle, and M.N. Venkatramu, Managing Director, Dakshina Kannada Cooperative Milk Producers' Union, announcing the launch of the dairy loan scheme for farmers in Mangalore on Friday .

MANGALORE: The Dakshina Kannada Cooperative Milk Union Producers' Ltd. (DKMUL) has tied up with Canara Bank to arrange dairy loans at 8 per cent interest per annum to members of primary milk producers' cooperative societies that work under DKMUL in Dakshina Kannada and Udupi districts.

Announcing this at a press conference here on Friday, M.N. Venkatramu, Managing Director, DKMUL, and R.K. Madhukar, General Manager, Canara Bank Mangalore Circle Office, said the bank has set a target to sanction Rs. 5 crores as loan under this scheme for 2005-06. Initially it was planned to cover 1,500 members of milk producers' cooperative societies under the scheme.

The scheme includes loans towards purchase of cattle, construction of cowshed, purchase of feed and milching machine and other working capital requirement.

The milk producers' cooperative societies and bank branches will identify the prospective borrower. He or she is expected to sell the milk on daily basis to the society. The society has to deduct a minimum of 50 per cent from the sale amount and remit it to the bank branch where the borrower has availed the dairy loan. The amount may be remitted to the bank branch on weekly basis till closure of loan account.

The entire loan shall be repayable in 60 equal monthly instalments with initial grace period of six months.

Mr. Madhukar said that this scheme facilitates proper identification of the borrower, timely credit at lower interest and ensures prompt repayment of the loan.

He said that the bank has a total of 65 branches in the two districts, of which 38 branches are in rural and semi-urban areas.

Mr. Venkatramu said DKMUL has two processing units. The one unit in Mangalore has a capacity to process 1.50 lakh litres of milk a day and the other unit at Manipal handles 80,000 litres of milk a day. The total production of milk in both districts stands at 1.94 lakh litres a day (the remaining is bought from other districts such as Hassan). This scheme is expected to help achieve the integrated dairy development plan of DKMUL.

The DKMUL has 485 milk societies with a membership of 36,000 in two districts. It has planned to induct 3,500 new cross breed cows in these districts this financial year.

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