Plans are underway to disburse loans of up to Ks 400,000 per acre for farmers who own between 10 and 50 acres of farmlands through the private banks, according to Myanmar Rice Federation (MRF).

“To initiate the project, the list of farmers in the Ayeyawady, Bago and Yangon regions, and Nay Pyi Taw Council Area working on about 50 acres of farmland has been compiled, and the loan will be initially disbursed for 100,000 acres. In the upcoming summer paddy season, approximately Ks 40 billion of 100,000 acres will be lent to farmers with around 50 acres of farmland in the Ayeyawady, Bago, and Yangon regions, as well as the Nay Pyi Taw Council Area,” 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 form7. 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 Agriculture Department 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.

Under the leadership of the Myanmar Rice Federation, agricultural loans of up to 400,000 kyats per acre will be provided through private banks to farmers up to 50 acres.

The Myanmar Agricultural Development Bank is now giving double Agri-loans for smallholders with 5 percent annual interest rate aiming to buy paddy harvesting machines, tractors and machines which can produce rice, edible oil and foodstuff and to build the factory and warehouse building.