Union Minister for Planning and Finance, Dr. Kan Zaw, announced that a new loan program for agricultural machinery will be implemented starting in early May to support farmers.
The announcement was made during a coordination meeting held on April 27 at the Ministry of Planning and Finance in Nay Pyi Taw. The meeting focused on expanding agricultural loans and introducing machinery financing as part of the government’s 100-day “quick win” initiatives.
The Union Minister said that, under these plans, the ministry will increase agricultural input loans and begin issuing loans for farm machinery. The Myanmar Agricultural Development Bank currently provides seasonal loans—during monsoon, winter, and pre-monsoon periods—for 24 types of crops, including paddy. To better support farmers’ production costs, the loan amount for the 2026–2027 fiscal year will be doubled on average compared to current levels.
With higher loan access, farmers will be able to spend more on essential inputs such as seeds, fertilizers, pesticides, land preparation, and harvesting. This is expected to boost crop yields and increase farmers’ incomes.
In addition to crop loans, the new agricultural machinery loan program aims to support the transition from traditional to mechanized farming and improve productivity in agriculture-based industries. Loans of up to 300 million kyats will be provided per sector, with larger amounts available for bigger operations.
The program, to be rolled out within the government’s 100-day plan starting in early May, will offer low-interest loans. The minister noted that providing loans aligned with farmers’ actual needs would help strengthen public trust in the government and state-owned banks. He also emphasized the importance of transparency and proper management by relevant departments.
Furthermore, officials from the Myanmar Agricultural Development Bank were instructed to strictly follow lending regulations, prevent misuse of funds, and avoid loan defaults. Regional and state bank branches are also required to supervise district and township branches closely and coordinate with institutions such as the Myanma Economic Bank to ensure efficient and systematic banking operations.
The minister added that, as these are special government-arranged loans, all stakeholders should work collaboratively with a sense of responsibility to help improve the socio-economic conditions of farmers.
