Agricultural Development Bank says it has plans to help storm-hit farmers

By Admin 13 Jun 2023

DMG Newsroom
13 June 2023, Sittwe

The Arakan State Agricultural Development Bank will help storm-hit farmers upon request, according to manager U Ba Kyaw Sein.

“Farmers should report their difficulties to us so that we can report to our higher-ups about the challenges facing them. If so, authorities may write off some debts or provide new loans. We have no authority to make decisions. It depends on the farmers,” he said,

The bank has earmarked 40 billion kyats to provide agricultural loans for farmers who have paid back last year’s loans, and says it will increase loan amounts as necessary.

The bank began disbursing loans on May 31, lending 150,000 kyats per acre for a maximum 10 acres per farmer.

The interest rate is 5 kyats per month for 100,000 kyats and hard-hit victims of Cyclone Mocha say the majority of farmers in Arakan State are having difficulties repaying their loans.

Farmer U Win Oo from Alel Chaung Village in Rathedaung Township said: “I could not afford to repay last year’s loan because the harvest was poor. So, I sold four cattle to pay back the loans. As I was about to pay back the loan, the storm hit Arakan State, and my house was badly damaged. So I had to use the money to repair my house. All my cattle died in the storm, and I am in deep water now.”

Thousands of cattle were killed by Cyclone Mocha across several villages in Rathedaung Township.

While rice seeds were soaked by the rains, power tillers were also damaged by saltwater during the storm, farmers have lamented.

“While the media are reporting daily about the difficulties facing farmers, no one has yet given close attention. If farmers can’t work on farms, it will affect the food security of the state. So, there is a need for authorities as well as international organisations to provide assistance for farmers,” said farmer U Kyaw Than of Myauk Kyein Village in Myebon Township.

Some organisations have recorded the names of farmers to supply rice seeds, but have so far supplied none, said local farmers.

The Arakan Farmers Union said it has reported to international organisations and the Myanmar military regime about the difficulties facing farmers.

Over 80,000 farmers took out loans from the Agricultural Development Bank in 2020 in Arakan State, and only over 30,000 of them (around 39 percent) paid back their loans. Some 30,000 farmers took out loans in 2021, and only around 7 percent reportedly paid back their loans.

Cyclone Mocha came as a serious blow to beleaguered farmers in Arakan State who were already struggling to repay their loans due to the triple shocks of Covid-19, armed conflict and unprecedented inflation.