Over 400 Bago farmers prosecuted for failure to repay loans

Myanmar Agricultural Development Bank (MADB) has announced that over 400 farmers from across 15 townships within Bago Region are currently facing prosecution for failing to repay agricultural loans issued to them with some due in 2012.
Sixty-seven farmers are being prosecuted in Thegon township, 56 in Waw township and 47 in Thanatpin township.
“The main issue is farmers who borrow credit need to be responsible for paying it back. Delays are experienced in the repayment of loans since the law is not very harsh when it comes to taking legal action,” said U Zaw Myint Htway, deputy administrator for Thegon Township.
Between 2012-13, farmers were eligible to borrow loans of Ks50,000 (US$42) per acre on up to 10 acres of farmland. Last year saw loans of Ks100,000 (US$84) per acre began to be issued for cultivation of monsoon paddy, while the loan limit has since increase to Ks150,000 (US$126) per acre this year.
“We’ve been given Ks150,000 per acre from the bank for this year’s monsoon paddy crops. As a matter of fact, expenses incurred per acre are over K250,000 (US$210) which includes the money needed for seedlings, ploughing, fertilizer, replanting and harvesting. Then amongst all these expenses, if we experience irregular weather fronts we risk losing our crops, rendering us unable to meet repayments on time.” U Tin Win, a farmer from Waw Township.
It is anticipated the MADB can support credit loans for over 75% of Bago Region’s 28,000 acres of monsoon paddy, this year will see returns to the bank.—Myitmakha News Agency


Source: The Global New Light Of Myanmar

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