August 19, 2016

Repayment date of crop loans pushed back

Farmers harvest rice in Tatkon. Photo: Aye Min Soe
Farmers harvest rice in Tatkon. Photo: Aye Min Soe

THE repayment date of crop loans taken out by farmers in the Tanintharyi Region capital of Dawei is to be pushed back until 15 April to allow those who took out the loans more time in which to repay them, according to the Dawei branch of the Farmers Development Bank.
In previous years the repayment deadline for crop loans was 31 March whereas this year the amount of days in which to repay loans has been increased. However, in keeping with years prior, crop loans are only eligible to those with a farmland ownership entitlement Form 7, not Form 105 farmland documents.
“In years before, all remaining repayments had to be made by the end of March. As the time of farmers making repayments gradually became later and later with each passing year, this year we allowed for farmers nationwide to pay back their crop loans in April.” said U Win Naing, regional manager of the Farmers Development Bank.
During the last year within three districts of Tanintharyi Region of Dawei, Myiek and Kaw Thaung, a total of K11,744 million was given out in loans of K100,000 per acre of a total cultivation acerage of 117,449 acres.
“We didn’t take out any loans. It’s not profitable for us to have to sell off our paddy in order to meet the repayment deadline. As such, if we require expenses for our farming activities then we just search for it locally.” said U Shwe, a farmer from the Min Yat village of Laung Lone township.
As weighing of paddy isn’t standardised within the region it causes many difficulties in when it comes to selling. The current market price of 1.6 bushels of paddy is K5,200. But a differentiation in the standard of 1.6 bushels between regions, of 13, 14 or 15 pyi’s making up 1.6 bushels, causes difficulties in selling, resulting in problems encountered in repaying loans.


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