Call to relax agricultural loans
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A proposal to increase the maximum agricultural loan to Ks 140,000 from Ks 100,000 would be submitted to the Union government, said Soe Min, minister of agriculture and livestock breeding.
At a special session of the Yangon Region Parliament on December 5, MP Tun Hla Shwe from Kyauktan Township constituency No.1 submitted a motion urging the regional government to raise agricultural loans and amend the loan repayment period.
Farmers are in urgent need of agricultural loans due to difficulties such as climate change and rising costs, the MP said.
At present, farmers can borrow Ks 100,000 for every acre of land.
Loan disbursement per acre was Ks 20,000 in 2010 (with a 17 per cent interest rate); Ks 40,000 in 2011 (13 per cent); Ks 80,000 in 2012 (8.5 per cent); and Ks 100,000 in 2013 and 2014 (5 per cent), he added.
In his address to parliament, Soe Min said that the loan ceiling would be raised. He also added that banks have faced difficulties in collecting debt from the farmers.
As prescribed by law, banks’ lending to farmers for monsoon season cultivation would be between May and September. The farmers will have to repay the debt by May 31 in the following year.
For the winter crop, farmers can seek loans during October to January and the repayment is due by June 30. Farmers can also seek loans again during January and March for the pre-monsoon crop, with the repayment due by December 31.
Soe Min noted that the Union government will also be asked to amend the repayment periods.
Over 70 per cent of households in Myanmar earn a living by growing rice.
Once the world’s biggest rice exporter, Myanmar is now struggling with structural problems. One concerns access to finance among farmers. Several farmers were also ripped off their land.
In another parliamentarian session, MP Min Thu said that about 300 farmers from across the country are currently in prison after facing charges in court over farmland disputes, said MP Min Thu.
The MP, who is also a member of the Farmland Dispute Investigation Commission, said there were more than 700 farmland disputes across the nation after the commission was formed.
About 30,000 complaints reached the commission since it was established on Aug 8, 2011. It (the commission) wants to ensure that no one loses their farmlands without being compensated and the government is still too weak to tackle the issue, said the MP.
"After our commission was formed, there were more than 700 farmland lawsuits resulting in 300 farmers put in prison across the country," he said.
"For example, almost all the villagers (about 120) from a village in Dekhina Township, Nay Pyi Taw were charged under the Forest Law and sent to prison recently. We should assist them instead of charging them in court," he added.
MP Khin Thandar pointed out that the mistrust among the farmers over the courts handling the cases could become a big issue if more farmers are put in prison.
