The Department of Agriculture has invited private companies that are affiliated with the Myanmar Rice Federation (MRF), Myanmar Pulses, Beans, Maize and Sesame Seeds Merchants Association (MPBMSMA) and the Myanmar Fertilizer, Seed and Pesticide Entrepreneurs Association (MFSPEA) to participate in the contract farming system in the coming summer paddy season and winter green gram season of the financial year 2022-2023.
The Ministry of Agriculture, Livestock and Irrigation will provide K230 billion loans to those farmers engaged in contract farming on 850,000 acres of summer paddy and 500,000 acres of winter green gram through contract farming groups.
The State will provide payment-in-kind (seeds, fertilizer, diesel) instead of cash and the summer paddy growers will be entitled to receive K200,000 worth of payment-in-kind per acre of summer paddy and K120,000 worth of payment-in-kind per acre of winter green gram. A total of K230 million will be granted for the contract farmers, with K170 billion for 850,000 acres of summer paddy and K60 billion for 500,000 acres of winter green gram. At harvest time, those crops will be purchased at the prevailing market price in line with the standard quality.
Rather than individuals, farmers’ groups, cooperatives, agricultural input companies and buyers are part of this scheme. Both those farmers who fail to repay Agri loans and those who have repaid loans can join this. Those who have not repaid the loans need to pay at least 25 per cent of their loans when they sell their crops. This contract farming scheme also aims to help the farmers get financing and repay their loans.
Contract farming is implemented under an agreement between the farmers and sponsor companies. It is a system whereby companies have to provide quality input and technical assistance and farmers can get access to financing without needing a loan for the necessary capital investment. It also ensures a strong market for crops and avoids low pricing at harvest time. Otherwise, it helps farmers create a sustainable market with the market price.
It is a win-win situation for both the contract farmers and the companies. The private entrepreneurs can buy the crops in one place and secure the Agri output in the markets, coupled with price stability, according to the statement released by the Ministry of Agriculture, Livestock and Irrigation.
For further details, those enthusiastic can contact the contact numbers 01-218266, 01-2301128 of MRF, 01-2314828,01-2314836 of MPBMSMA, and 09-795411370, 09-5012662 of MFSPEA, the statement mentioned.
There are 45,109 acres of green gram in Kyauktan, Thongwa, Kayan, Thanlyin, Htantabin and Kawhmu areas in the Yangon Region, with Thongwa Township placed first with 29,741 acres. – TWA/GNLM