CNI News
4 Mar 2023
Plans are underway to offer loans worth more than MMK 900 million to salt farmers and millers in Rakhine State in March, according to the Rakhine State Salt Entrepreneurs Association.
The loans will enable 30 to 50 percent of salt farms to start production and those who have registered as salt farmers are eligible for loans but those who have not registered yet are required to do so, Chairman U Than Win of the Rakhine State Salt Entrepreneurs Association told the CNI.
He told the CNI, "We requested the government to offer loans to registered salt farmers and mills and the government has approved the request. Authorities are currently scrutinizing the eligible salt farmers. After the scrutiny, we will issue the loans worth more than MMK 900 million in March and 30 to 50 percent of salt farms will be able to start production. I think there are more than 3,000 to 4,000 acres of salt farms but only about 1,000 acres have been registered. Those who have registered their farms will receive the loans. It is important for farmers to register their salt farms. They can tell us their difficulties transparently."
Salt farmers.
During the 2021-2022 salt production season, farmers produced 20,000 tons of salt from only about 1,000 acres of salt farm but salt farms have been expanded to 4,000 acres this year.
When the loans have been received, farmers are required to build salt storage facilities properly and the loans should only be used for production of salt, U Than Win added.
He said, "The loans must be repaid. If the loans are abused, the government will not offer loans to salt farmer for many years. If farmers repay the loans, we can request the government to offer loans to salt farmers again. So, we seriously request salt farmers to use the loans not for other purposes but for salt production. The government has stopped offering loans to salt farmers in other regions and states where salt farmers failed to repay loans. We need to prevent such undesirable scenarios.
Salt farmers.
The association will offer loans worth from MMK 300,000 to MMK 500,000 per acre at low interest rates.
Salt is mainly produced in Kyaukphyu, Sittwe, Myaybon, Thandwe and Gwa townships in Rakhine State and Myanmar salt merchants are holding discussions with their Bangladesh counterparts to export quality salt to the neighbouring country.
Before the year 2000, there were 10,000 acres of salt farms in Rakhine State but total acreage of salt farms dropped to only 1,000 acres later, according to the statistics of the association.
