CNI News

15 Sept 2022

The Farmers Development Association has called on authorities not to take action against farmers who failed to repay their loans from government banks, Chairman U Thein Aung of the FDA told the CNI.

Some farmers were unable to repay their loans due to a general crisis including abnormal weather conditions, pests and rising fertilizer prices.

U Thein Aung told the CNI, “We went to relevant ministry and met officials personally to submit our requests. We called on authorities to grant new loans for farmers who have repaid all their loans and not to take action against those who were unable to repay theirs. Some farmers have been unable to repay their loans for a few years. Action is generally not taken against them but they cannot apply for new loans.”

Thanks to the requests of the association, farmers who have repaid their loans can get new loans within one month.

Farm girls spreading paddy seeds. (Department of Agriculture)

As peasants have embraced mechanized farming, they face high costs of inputs.

Farmers who can repay their loans are those who engage in other livelihoods in addition to farming, Farmer U Aung Kyaw Mya told the CNI.

U Aung Kyaw Mya said, “I think only about 20 percent of farmers can repay their loans and about 80 percent of them could not because they have many difficulties. Those who have repaid engage in other livelihoods like fish breeding. Those who do farming alone cannot repay loans.

Due to the rising prices of inputs such as fertilizer, fuel oil, pesticides and seeds and shortages of water, some farmers had to halt their farming activities or decrease cultivation acreage, leading to falling crop yields.