Associations to Take Responsibilities for Agricultural Inputs

The Myanmar Fruit, Flower and Vegetable Producers and Exporters Associations and other regional associations will buy agricultural inputs from tender winning companies for farmers in the Bago Region, Mandalay Region, and Sagaing Region who are growing watermelon and cantaloupe.

Agricultural inputs are all the items needed to grow crop such as seed, fertilizer, irrigation, pesticides. Indirect agricultural inputs include things like farm equipment and fuel.

Officials from the association made their announcement at the signing ceremony between Myanmar Watermelon and Cucumber Cultivation and Exporters Association (MWCCEA) and its partners for buying agricultural input held at UMFCCI on September 7.

“We have over 30 member associations. This is the first agreement to collectively buy agricultural inputs such as fertilizers, as an example. The main obstacles in our agricultural sector are inefficient inputs which increase our cost,’’ said U Soe Than Min Din, President of Myanmar Fruit, Flower and Vegetable Producers and Exporters Associations.

The association expects that buying agricultural inputs collectively will cut the cost of inputs and further reduce agricultural costs, which are higher than of neighboring countries. Moreover, farmers are facing difficulties in choosing the right input from low quality products, and therefore, the association will purchase the correct agricultural inputs from tender winner companies for farmers in Bago Region, Mandalay Region and Sagaing Region.

YARA Myanmar and JJ PUN Company Limited have won the tender, and Ayeyarwady Farmer Development Bank will serve as a financial partner.

“We are in negotiations on financial issues. We have not decided whether the bank will provide service on the contract or directly to the famers. The farming period is six months and inputs must be delivered during that period,” said Daw Sandar Myo, Secretary of Myanmar Fruit, Flower and Vegetable Producers and Exporters Associations.

According to initial agreement terms, farmers must pay back in one month after the harvest, but the agreement on service terms has not been reached.

Source: Myanmar Business Today

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