Although monsoon paddy cultivation loans were increased to 300,000 kyat per acre and distributed across townships in Mon State on May 12, farmers said the number of borrowers remains low.
The loans are being distributed under the military junta’s 100-day project, which authorities say is aimed at improving the socio-economic conditions of farmers. State government officials, parliament representatives and bank staff participated in the loan disbursement process.
Farmers said the cultivation loans for monsoon paddy and other crops have nearly doubled compared to last year, but rising production costs mean the loans are still insufficient.
“Farmers went to take out loans this morning. They are giving 300,000 kyat per acre. Even though the amount increased, it does not make much difference. Costs for ploughing, harvesting and fertilizer have all increased, so it is not enough. I think it can cover only about half of the expenses. Right now, we have to pay nearly 100,000 kyat a day for a daily wage worker. I do not know how we can manage,” a farmer from Paung Township said.
The farmer added that reducing fertilizer and fuel prices would benefit farmers more than increasing loan amounts.
According to farmers, the price of one bag of fertilizer, which was around 90,000 kyat last year, has now risen to nearly 200,000 kyat. Fuel has also become difficult to buy, while prices increased from around 50,000 kyat per container to more than 180,000 kyat.
Farmers also said crop prices, including rice and other agricultural products, have not increased enough to offset cultivation costs, raising concerns about growing debt.
“Around the summer season, bean crops produced low yields because of fuel shortages, and prices were also low. There was no profit. I am now considering not planting monsoon paddy this year. Even if we plant, it does not look profitable. Otherwise, we are worried we will only end up in debt,” a farmer from Kyaikmaraw Township said.
Due to rising cultivation costs, some farmers in Mon State are planning to reduce the acreage of monsoon paddy cultivation this year or temporarily suspend farming operations.
Last year, cultivation loans for the 2025 monsoon paddy season began being distributed on May 19. Farmers who had fully repaid previous loans without debt received 150,000 kyat per acre with an interest rate of five percent.
After former military leader Min Aung Hlaing pledged to carry out regional development, education, healthcare and peace-related activities within 100 days as part of a transition process, local ward and village organizations have reportedly been mobilizing public support.
