The government will grant agricultural loans to farmers with an 8 per-cent interest rate. Farmers must repay both agricultural loans and the interest at once if they are unable to grow paddy. If necessary, action will be taken against those who breach the agreements, according to a statement by Ministry of Planning and Finance.

The ministry will also take action against staff that had scrutinized and granted loans to farmers, in accordance with procedures if the loan granting process was found to be dishonest.

In 2018-2019 fiscal year, Myanmar Agricultural Development Bank (MADB) will increase the agricultural loan for other crops from Ks50,000 to Ks100,000 per acre, the statement says.

The MADB increased the agricultural loan for paddy from Ks100,00 to Ks150,000 per acre in 2016-2017 FY, for other crops from Ks20,000 to Ks50,000 per acre in 2017-2018 FY.

Farmers will put up the original of Farmland Permit (Form-7) as collateral to take agricultural loans for monsoon paddy in 2018-2019 FY.

For the loan scheme for 2018-2019 FY, the MADB will grant agricultural loans to farmers for winter crops from October 26 to December and pre-monsoon loan from May 2 to September. Farmers need to contact the MADB and township branches to get seasonal agricultural loans in time.

Township branches are to be aware of the facts that they cannot grant loans to farmers before getting seasonal loan funds and grant loans more than allowance, according to the ministry.

The ministry has warned that township branches cannot cut agricultural loans granted to farmers directly or indirectly.