Some farmers yet to see extra loans to cope with COVID-19

By Win Nyunt 07 Jul 2020

Win Nyunt| DMG
7 July, Sittwe

Supplemental agricultural lending to help offset challenges posed by COVID-19 has begun in six Arakan State townships, but some farmers say they have not yet received the loans.

Agricultural loans during the virus crisis are to be increased by K50,000 (US$35) per farmland acre; the government disbursed loans of K150,000 per acre under cultivation last year, with that number rising to K200,000 with the extra coronavirus cash.

Loan disbursements began late last month in Kyaukphyu, Sittwe, Thandwe, Buthidaung, Kyauktaw and Ramree townships, according to an official from the Myanmar Agricultural Development Bank (MADB) in Arakan State.

U Oo Thar Hla, a farmer from Gaungtote village in Kyauktaw Township, said he expected that the boost to farm lending would help buy fertiliser and paddy seed — eventually.

“We heard farmers would be disbursed loans of K50,000 more an acre. But we are not informed about it and we have not received it so far,” he said.

DMG phoned U Thein Zaw, manager of the MADB in Kyauktaw Township, to ask about the rollout of the additional lending, but he could not be reached.

U Aung Thein Hla, a farmer from Kyar Nyo Pyin village in Buthidaung Township, said: “Farmers need financial aid amid the COVID-19 crisis. So, the loan would help us. But we did not know about the loan and we were not told about it.”

U Aye Thein, manager of MADB in Arakan State, told DMG that the bank cannot compile lists of eligible farmers in some townships due to security issues, but he confirmed that disbursements were taking place in six townships.

“If we get the list we will disburse the loan. We are ready to give the loans,” he said.
According to figures from the MADB in Arakan State, the state-owned bank disbursed K79.85 billion worth of monsoon paddy loans in 2019, but farmers had repaid just K11.10 billion through May 27.

Delinquencies on loans disbursed last year have been blamed on difficult growing, harvesting and market conditions amid conflict in several parts of Arakan State.