The contract farming system has been introduced to farmers for many years in Myanmar but its development is seen in delay due to a lack of systematic implementation between the government and the farmers without adopting the necessary work procedures till today.
In fact, contract farming can be defined as encouraging the cultivation and production of crops with the provision of quality seeds, agricultural techniques and inputs and taking agreements between the private sector and farmers for sending the agricultural produce to the market. This being so, the government is responsible for disbursing loans at a soft interest rate to farmers in order to purchase necessary inputs as part of efforts for implementing mutual cooperation between the government and farmers.
Recently, the government decided to implement the contract farming system to cultivate 850,000 acres of summer paddy and 500,000 acres of green gram. Primarily, the government will disburse K200,000 per acre to local farmers for buying quality strains of crops, inputs and fertilizers and K120,000 per acre for green gram. To do so, the government will issue K170 billion for summer paddy and K60 million for green gram at a one-per-cent interest rate.
The Ministry of Agriculture, Livestock and Irrigation will take responsibility for providing necessary agricultural techniques and management measures for the implementation of the contract farming process whereas the Ministry of Cooperatives and Rural Development will assist in growing crops with inputs, forming cooperative societies with farmers and will give a helping hand to farmers in signing the agreements of cooperative societies.
In implementing the contract farming system, the efforts for collective ploughing, the arrangements for land preparations for cultivation with the use of agricultural machinery and the harvesting of crops through collaborative efforts can save the expenditure on farming tasks in an easy management manner. To be able to do so, only when farmers need to work in groups or associations will grouping of farmers and the formation of cooperative societies be important.
As such, contract farming will be a great tool for increasing the high yield of paddy and green gram which are potential for foreign markets in order to boost the State economy and enhance the socioeconomic life of farmers. Hence, it is an onus for all to implement the contract farming system on a wider scale to have great success so as to directly solve the input problems of farmers engaging in the small farming plots and to create a stable market.
As such, contract farming will be a great tool for increasing the high yield of paddy and green gram which are potential for foreign markets in order to boost the State economy and enhance the socioeconomic life of farmers. Hence, it is an onus for all to implement the contract farming system on a wider scale to have great success so as to directly solve the input problems of farmers engaging in the small farming plots and to create a stable market.
