The idea is to increase production and so the farmers from 17 groups in Morogoro region are already engaged in a sensitisation programme on how to venture into high yielding sugar cane production, compliments to the bank.
TADB’s Director for Credit and Business Development, Robert Pascal told The Banker that they are just waiting for loan applications from the farmers for other procedures to follow. Beneficiaries of the loans will be farmers engaged in sugarcane production in Kilombero district who supply to Kilombero Sugar Company.
The loans will be issued in accordance to their needs to help them meet planned agricultural activities, increase sugar production, raise their income and facilitate the development of sugarcane value chain.
Currently, TADB has earmarked 60bn/- to support smallholder farmers engaged in sugarcane, sesame, sunflower, paddy and maize production as well as livestock keeping such as dairy, meat, poultry, fish farming, beekeeping and honey processing and other crop related value chain.
Pascal said during the start of a sensitisation workshop that TADB had decided to support farmers to help face major challenges in the agricultural sector. The bank will provide affordable loans to help small scale farmers increase sugarcane production and meet domestic demand of the commodity.
The bank will provide short, medium and long term loans to help farmers benefit from what they grow and reduce the major impediment they have in sugarcane value chain. The finance will cover all loans extended for a period of one to 15 years.
The funds are intended to cover all costs related to agriculture production such as preparation of farms, purchase of seeds, fertilizer, labor, hiring of agriculture equipment/machinery and other inputs necessary to enhance productivity.
“Loans are expected to be liquidated using sales proceeds obtained from the harvested crop. Therefore no repayment is expected before the crop is harvested and sold. Repayments are in installments,” he said.
On top of that, the bank will finance and support all activities that will increase sugarcane productivity, such as agronomic, research and extension services and training of farmers on modern sugarcane farming using good agriculture practices. Others include purchase of affordable irrigation technology and equipment.
The managing director further said that the bank will finance and support investments for building, purchase of machineries and installation of processing machines for value addition such as purchase of harvesting equipment and technologies.
Others include purchasing of processing and milling machines, including packaging materials and finance purchase of grading, drying, branding and bar-coding machinery for sugarcane and sugarcane products and other financing requirement to facilitate and enhance sugarcane value addition.
“Our main focus is to ensure sugarcane marketing infrastructure is on point whereby the bank will finance sugarcane value chain market infrastructure development such as financing construction of sugarcane storage and market infrastructure and financing logistics and transportation of both raw and processed products to the market,” he said.
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