Farmers in Mon State are growing concerned that they may not receive government loans for rain-fed paddy cultivation in time for this year’s planting season, due to delays caused by a rotational loan distribution system and outstanding debts from previous years.
The distribution of loans for the 2025 monsoon paddy season began on May 19, with eligible farmers who have fully repaid previous loans receiving 150,000 kyats per acre at an interest rate of 5 percent, as in past years.
However, a representative from Paung Township said that under the current rotation system, loans are issued at a rate of one village per day at Myanmar Agricultural Development Bank (MADB) branches. Villages with overdue debts are being placed at the end of the queue, resulting in long delays.
“There are 58 villages in our area, and it’s one village per day, add weekends and holidays, and it could take two to three months. The rains will start, and planting will begin before our village gets its turn. So we’ll have to borrow from private lenders, and their interest rates are much higher,” the farmer explained.
He added that farmers are also calling for larger loan amounts this year, as agricultural costs have risen significantly. He emphasized the need for an organized system to ensure that all farmers in need receive timely loans.
A farmer from Bilin Township said that those who still have outstanding debts are not eligible for new loans and are being forced to turn to private moneylenders or reduce their cultivated acreage.
“Our village hasn’t finished repaying its loans yet. Villages that repaid early are getting new loans first. Those of us who still owe money can’t borrow again. But farming costs are rising. Hiring a laborer now costs 25,000 kyats per day. Rice prices are low and unstable. Our production costs and selling prices don’t match at all,” he said.
Due to a labor shortage in the country, most farmers are resorting to the broadcast sowing method, which is less labor-intensive but results in lower yields. Current paddy prices are also reported to be around 1.3 million kyats per 100 baskets, significantly lower than expected.
This year, the cost of essential inputs, seeds, fertilizer, plowing, and labor has also increased, and many farmers say the government loan barely covers the cost of seeds, let alone other expenses.
In Mon State, over 60 percent of farmers use the broadcast sowing method, which, according to them, results in reduced yields and lower market prices for their crops.
Moreover, although the military junta recently distributed compensation for farmlands damaged by flooding in April, many affected farmers in Paung Township reported being left out of the official lists and thus received no assistance.
