Vast majority of agriculture loan borrowers in Arakan State late to repay: development bank

By DMG 27 Apr 2022

DMG Newsroom
27 April 2022, Sittwe  

Only 7 percent of Arakan State farmers have paid back agricultural loans that they took out last year, according to the state branch of the Myanmar Agricultural Development Bank. 

The bank will start disbursing loans in May to farmers who have repaid their loans, said bank manager U Ba Kyaw Sein. 

“We will give out agricultural loans around the second week of May. We will only provide loans to those who have paid back their last year’s loans. Only 7 percent of farmers have repaid their loans. We will provide 150,000 kyats per acre,” he said. 

Farmers who cannot afford to pay back their loans have complained of difficulties growing monsoon paddy, in part because they cannot get agricultural loans and also because of the high prices of inputs such as fertiliser and fuel. 

“Farmers who can’t repay agricultural loans have had difficulties growing monsoon paddy. What’s more, the prices of fertiliser and fuel are high. I can’t pay back loans, and I plan to grow fewer acres,” said farmer Ko Oo Soe Thein from Mrauk-U’s Tein Nyo village.  

Sown acreage declined by more than 50,000 acres last year in Arakan State due to the rising price of fertiliser. 

Arakan Farmers’ Union chairman U Kyaw Zan has called on authorities to supply fertiliser at artificially low prices. 

The market price for a bag of fertiliser stands at more than K90,000, and fuel prices have also increased significantly. 

The Arakan State Agriculture Department last week said it had distributed fertiliser to its township offices in Thandwe, Taungup, Gwa, Mrauk-U and Kyauktaw townships so that local farmers can buy fertiliser at reduced prices.