FDI and subsidies required to enhance agricultural sector

Foreign direct investment (FDI) and subsidies are required to enhance the agricultural sector.

Farmers need to survive from occasions when they are offered a lower price after a harvest. Besides, efforts will have to be made to attract more FDI to put into agricultural sector.

At harvest time, supply overpowers demand, resulting in a low price for the crops. Concerted efforts are required to solve this problem. The system that the government will use to purchase the crops to control the decreasing price in a market has already been enshrined into a law concerning the farmers’ rights. However, the central unit to purchase the crops is not yet constituted, it is learnt.

The low price is also positively related to the quality of the products. Myanmar is still weak in manufacturing high quality products. The pedigree processing businesses have been allowed to operate with 100 per cent foreign investment this year. The total of foreign direct investment as of July in this fiscal year is over US$64 billion, but only over $294million was invested in the agricultural sector, it is learnt.

Sometimes, a good price is offered when the foreign countries fulfill their market requirements. Farmers are required to have access to updated information about the crop market. Technical awareness campaigns are also required to be conducted.

Source: Global New Light of Myanmar

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