CNI News
17 December 2023
Plans are being made to lend 400,000 kyats per acre to farmers who own 10 acres and above as a short term loan, according to the Myanmar Rice Federation.
The MRF had a coordination meeting with those in charge from the Myanmar Agricultural Development Bank, the Myanmar Economic Bank, the KBZ Bank, the A Bank, the AYA Bank and the UAB Bank and loans will be issued to farmers with form (7) guarantee reportedly.
Not only the farmers who own 10 acres and above, the farmers who own under 10 acres should also be lent, U Thein Aung, chairman of the Farmers Development Association, told CNI News.
" If the farmers who own 10 acres and above are lent, it doesn't kind of care the farmers with a few acres. Among the five points of protection of farmers' rights and promotion of interests, the final point is to give priority to the farmers with a few acres. In fact, the farmers with a few acres are largely lack of capital because they find it difficult to make ends meet. If possible, it would be better if they were lent." he said.
the Myanmar Rice Federation
It was the first time that MRF had planned to lend the farmers and the loan amount would be supportive to the farmers, said farmers. Because summer paddy is being grown in some regions, only if the loans are issued before January, will it be convenient for the farmers, suggested the farmers.
The loan is only for the development of agricultural production in the areas where summer paddy is grown in Ayeyarwady, Bago, Yangon, Mandalay Regions and Naypyidaw Council area.
However, Sagaing Region and Rakhine State are not included in the places that the loan will be issued. It was probably because of instabilities in those regions, Ko Zaw Min Naing, an agricultural and economic advisor, told CNI News.
While seeing farmers
" The farmers in the regions supposed stabler in comparison with other regions are lent, I think. Although around Shwebo area is grown paddy, armed conflicts are severely taking place. Moreover, the number of people who grow paddy has declined. And banks don't seem to accept to lend the farmers in those regions because they have to take a lot of risk. Because the battles are breaking out in Rakhine State, the banks seem to have decided not to lend the farmers in the state." said Ko Zaw Min Naing.
The MRF and the banks had a negotiation meeting to lend for 100,000 acres as the pilot project.
Because the farmers are finding it to buy fuel at present, the MRF is planning to enable the farmers to buy fuel and fertilizer sufficiently at lower prices reportedly.
