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Myanmar will receive US$27 million in funds under the Global Agriculture and Food Security Programme (GAFSP) to kickstart a value chain financing project for agricultural businesses in the Dry Zone, said U Hla Kyaw, deputy minister of the Ministry of Agriculture, Livestock, and Irrigation (MOALI).
is a multilateral mechanism to assist in the implementation of pledges made by the G20 in Pittsburgh in September 2009. The objective is to improve incomes and food and nutrition security in low-income countries by boosting agricultural productivity.
At the Pyidaungsu Hluttaw meeting yesterday, approval to receive funds under the GAFSP was given together with approval to take a $40.4 million loan from the Asia Development Bank to implement the project.
The GAFSP loan will cover water supply, digging of wells, education on nourishment and 24-7 monitoring, which are not covered by the ADB, said U Hla Kyaw.
The project will be carried out in five townships of Magwe Region, four townships of Mandalay Region and five townships of lower Sagaing Region. Financing will be provided for the training of farmers, provision of higher quality seeds so that producers can enjoy better paddy, chick pea and sesame yields that are more resistant to the weather as well as establishing a digital loan repayment system for agriculture purposes.
The project, which is for a period of seven years until September 2025, will also include financing for the upgrading of laboratories where foodstuff, insecticides and quality of fruits are examined.
To implement the project, factors such as the existing value chain established with producers, suppliers and traders, surplus production of crops, existence of agribusiness infrastructure which should be repaired and expansion in network of water wells was considered, said U Hla Kyaw.
The return on investment is estimated to be at least 12pc.
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