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Extension of interest rate subsidy package for farmers proposed
The Ministry of Industry and Trade (MOIT) has proposed to extend the interest rate subsidy package for six months in order to give farmers more time to access preferential loans.
MOIT’s deputy director of Domestic Market Policies Department Hoang Tho Xuan said that if the proposal by MOIT is approved, the subsidy package would be extended until June 30, 2009 instead of ending on December 31, 2009 as previously planned.
The package for farmers was outlined in “Decision 497” in April 2009, under which farmers can borrow money at preferential rates to purchase equipment and materials.
However, analysts say the package has not helped. Farmers still cannot purchase agriculture machines, because under the decision, they can only use the borrowed money to purchase made-in-Vietnam machines. Meanwhile, there are more import machines than Vietnam-made machines available on the market.
Xuan from MOIT said his ministry is trying to amend some unreasonable regulations to make it easier for farmers to access the subsidies package. This will include regulations on the borrowing term and products which can be purchased.
Xuan said ‘agriculture machines’ will be understood to mean not only machines serving in rice fields, but also machines serving farm produce and seafood processing, handicraft production and industrial plantation.
He added: “Machines which are made in Vietnam but use parts imported from other countries will also be recognised for the interest rate subsidy package.
“At least 20 types of machines will be added to the list of those in line for the interest rate subsidy package.”
Xuan blames difficulties in accessing interest rate subsidy package on bad communication. A lot of farmers, he said, still did not know about the policy.
He has reassured farmers that there is no need to worry about a shortage of capital. Commercial banks have promised in meetings with the MOIT that they will arrange enough capital for farmers.
VietNamNet, TT
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