About Ks2000 billion agricultural loans to be lent in current FY

 May 2, 2017

THE Ministry of Agriculture, Livestock and Irrigation is planning to give around Ks1980 billion in agricultural loans to farmers this fiscal year, its spokesperson said.

These kinds of loans will be disbursed to a target group of farmers beginning this month with a very low interest rate.

Under the ministry’s scheme, rice growers will receive Ks150,000 per acre of farmland while other crop growers will be lent Ks50,000 for an acre of land, said U Myo Tint Tun, assistant secretary in the ministry.

Under its lending rules,the ministry will grant agricultural loans for monsoon crops to farmers who have no more than ten acres of paddy. A total of Ks1400 billion was lent to those cultivators at an 8 per cent interest rate last fiscal year to grow monsoon crops.

It was hard for rice growers to meet target profits this year because of untimely weather that occurred in June, July and August. The drop in rice prices seriously affects domestic manufacturers.

Therefore, the ministry announced that it would extend the repayment period for disaster-hit growers who said it would be difficult to return their loans to the government during the target repayment period.

The yearly prices of 100 baskets of rice are usually between Ks400,000 and Ks600,000. The prices have declined to Ks350,000 this harvest time.

The Ministry of Agriculture, Livestock and Irrigation is working to promote the country’s agriculture industry under its five-year development plan. The major aim of the project is to improve socio-economic status of rural community by promoting involvement of farmers operating small-and-medium-scaled agribusiness.

Phyo Lwin Aung (AMIA)

Ref; The Global New Light of Myanmar