Farmers to get COVID-19 relief loans of K50,000 per acre

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A staff member of Myanma Agricultural Development Bank giving out loan to a farmer.  Photo: Myo Thu Hein

The Myanma Agricultural Development Bank-MADB under the Ministry of Planning, Finance and Industry will provide farmers nationwide the loan of K 50,000 per acre from the Special COVID-19 Relief Loan, according to U Min Thu, MADB’s Managing Director.
The COVID-19 relief loan, which totally amounts to K600 billion nationwide, will be given to farmers starting from 22 June.
In addition to the monsoon loan that farmers get K150,000 per acre, the relief loan was provided by the government to farmers amid COVID-19.
“The loan is given to help farmers for their losses in agricultural sector, boost agricultural production, and increase the speed of cash flow among the public. Its interest rate, which is the same rate of current agricultural loan, is 5 per cent,” U Min Thu said.
Farmers in all regions and states including Nay Pyi Taw Council Area will get the relief loan for their total 12 million acres of farms.
All farmers across the country who fully paid their previous loans are eligible for the relief loan. Each farmer can borrow the loan for up to 10 acres of their farms.
The bank already provided K362 billion of winter loan and K18 billion of monsoon loans, is currently granting K1,471 billion of monsoon loan, and will provide K600 million of one-year COVID-19 relief loan.
In addition to the MADB’s loans, JICA loans that each farmers get up to K50 million were also provided to famers for purchasing agricultural machineries, he said.
He adds that a total of 5, 000 farmers were already given the loans of K200 billion with up to 40-year loan term. It is very beneficial for farmers in the long term.
U Zaw San Htay, a farmer from Salin Township, said, “We get winter loan, monsoon loan and COVID loan as agricultural loans. Getting this additional relief loan is very helpful for us.” Markets have been closed since COVID-19 outbreak, and crops are not sold yet. Even though some shops and markets are now open, the prices of the crops are not good.
Farms were prepared to cultivate monsoon paddy and sesames. Money is needed to prepare the farms.
“If we borrow money from others, the interest rate is high; the government’s COVID-19 relief loan, whose interest is low, is very helpful for our farmers,” he added.
The Myanma Agricultural Development Bank will provide the COVID-19 relief loans to farmers through its 57 banks and 151 branches.—Myo Min Naing (Translated by Kyaw Zin Tun)

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