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 (MRF).

The MRF has been coordinating with authorized dealers (private banks) for the loan scheme to reap a fruitful result.

Farmers must provide farmland permits (Form 7) as collateral. The loan tenure is around four to five months with an annual interest rate of ten per cent. The farmers can take out loans for up to 100 acres. 

The loan application will be forwarded to the relevant banks after the MRF’s scrutiny.

“As for "Big Farmers", we are now preparing to start working on 100,000 acres in the coming summer rice season. To initiate project, we took the list of farmers in the Ayeyawady, Bago and Yangon regions, and Nay Pyi Taw Council Area and then the loan will be initially disbursed for 100,000 acres. The agricultural loan will be Ks 400,000 per acre,” said MRF Chairman U Ye Min Aung.

The Myanmar Agricultural Development Bank provides annual agricultural loans to farmers throughout Myanmar to provide them with agricultural capital.

"Now we are going to try and implement it as a pilot project. In fact, Ks 150,000 offered by the government via the agricultural bank is only up to 10 acres. Big farmers also get agricultural loans for up to 10 acres. Some of them have separate names. Whatever it this, there are people who cannot distinguish farming land certificate form 7. We are now planning to give a loan of Ks 400,000 per acre. With the aim to increase the per acre yield, we are going to use equably natural fertilizers. Moreover, we are going to find good strains for planting and will also provide a sale program for producing crops by connecting with nearby factory owners and traders," U Ye Min Aung said.

The Department of Agriculture is now implementing input programs which aim to support agricultural loans Ks 200,000 per acre for the farmers under the program of national economic promotion fund.