Myanmar gov't to lend 1.41 bln USD to farmers

Source: Xinhua| 2017-05-03 14:21:06|Editor: xuxin
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YANGON, May 3 (Xinhua) -- The Myanmar government has planned to lend around 1.9 trillion kyats (about 1.41 billion U.S. dollars) in agricultural loans to farmers under the scheme of the Ministry of Agriculture, Livestock and Irrigation in 2017-2018 fiscal year.

Beginning in May, a target group of crop growers will be loaned at a low interest rate, the official Global New Light of Myanmar reported Wednesday.

In accordance with the lending rules, the ministry will grant agricultural loans for monsoon crop growers who have no more than 10 acres (4 hectares) of paddy.

During the last FY 2016-2017, agricultural loans for monsoon crops cultivators totalled 1.4 trillion kyats at 8-percent interest rate.

Due to the erratic weather in June, July and August 2016, rice growers were unable to meet the targeted profits and the drop in rice prices affects domestic production.

Disaster-hit growers, who could not return their loans during designated period, could extend the repayment period, according to the ministry.

At current harvest time, the prices of 100 baskets of rice have declined to 350,000 kyats while the yearly prices are between 400,000 and 600,000 kyats.

The ministry is trying to promote the country's agriculture industry under its five-year development plan aimed at improving socio-economic status of rural community by promoting cooperation with farmers operating small and medium-sized agribusinesses. (1 U.S. dollar = 1,346 kyats)