Myanmar raises farm loan limits and cuts interest rates as fertilizer costs climb

Myanmar has raised the ceilings on subsidized loans for farmers and reduced interest rates on agricultural lending to help offset rising fertilizer and fuel costs. These measures, implemented through the state-run Myanmar Agricultural Development Bank (MADB), aim to support crop production and farm mechanization during the 2026/27 fiscal year, which began in April.

Under the revised program, production loan limits for rice, wheat, and long-staple cotton seed have doubled to 300,000 Myanmar kyat (about $71.40) per acre, up from 150,000 kyat ($35.70). Ceilings for crops such as peanuts, sesame, sunflower, pulses, onions, chili, sugarcane, and seed corn have increased to 250,000 kyat ($59.50) from 100,000 kyat ($23.80). Annual interest rates on crop production loans have been reduced to 5%, below the 8%–13% typically charged by government banks and the 12%–18% at private lenders. The bank has also introduced machinery loans from 10 million kyat ($2,380) to 500 million kyat ($119,047) at a 6% annual interest rate, with repayment terms of 1, 3, or 5 years.

This lending expansion is part of Myanmar’s 100-Day Action Plan, which also supports agriculture, rural development, irrigation, education, and healthcare. Authorities stated that higher loan limits are intended to address rising production expenses from fertilizer and fuel price inflation and to encourage greater adoption of agricultural technology. Loan disbursements for monsoon crops began in several regions in May.