ARDC FINANCE FOR CASHEW DEVELOPMENT

The main object of ARDC is to assist the proposals in respect of various agricultural development projects which normally need a medium or long-term assistance. The refinance is available through co-operative and scheduled commercial banks. In respect of plantation crops, new planting, replanting and rehabilitation wherever there is a definite gestation period or the initial investment is quite large qualify for ARDC assistance. Infrastructural facilities required such as development of irrigation facilities, land development and fencing, laying of farm roads, construction of storage buildings and labour houses and transport vehicles required for efficient running of the farm are also refinanced if the scheme is an integrated one. Assistance for processing arrangements of the produce is considered if it is combined with production.

The projects should be self-generating and the income adequate enough to facilitate the liquidation of loan within 15 years. While the repayment has to be made from the profits accruing from the developmental activity undertaken, the interest on the principal is required to be paid annually (from the second year) except in deserving cases where it could be deferred.

The other objectives of ARDC are (i) to bring about diversification of purposes of development, (ii) development in nontraditional areas where potential exists, (iii) reduce regional imbalances in development and (iv) laying stress on the needs of the small farmers.

There is a general misconception that the ARDC is only a financing institution. Though it does deal with credit requirement, the ultimate aims to achieve the desired development in the concerned field. Accordingly the feasibility of the schemes both from the technical and economic view points is looked into. ARDC would like to ensure that developmental projects envisaged are basically sound and are operated with adoption of package

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