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Govt mulls loans to boost food production
The government has agreed in principle to provide loans for agricultural producers so they can supply food for labourers working on the Laos-China railway, according to a senior official.
“The government will consider loans for producers who lack capital but can show intention to boost production capacity to supply food to the railway project,” Lao National Chamber of Commerce and Industry President Dr Sanan Chounlamany told Vientiane Times yesterday.
“There will be about 30,000 to 50,000 labourers working on the railway so the demand for food in Laos will increase.”
Dr Sanan said railway project officials had talked to chamber officials about the supply of food for workers, pointing out that if Laos was unable to provide food, it would have to be imported.
“We have to produce food for the project if we are to benefit from the US$7 billion venture, otherwise we will only see money flowing in and out of the country,” he said.
When asked if the chamber needed information on the amount of food required, Dr Sanan said project officials would not provide this information, adding that it was the job of Lao businesses to find out the details.
He said the Lao Agriculture Processing Association was discussing plans to increase production capacity.
He also said Lao businesses would not expect to provide all of the food, but would supply about 20 to 30 percent of total requirements over the first year and step up supply in the following years.
A member of the Lao Agriculture Processing Asso- ciation, Mr Neuang Sombounkhan, said yesterday the association was trying to obtain a low interest loan from the government so they could boost food production.
Mr Neuang, who is President of the Vientiane Pig Farm Association, said the pig breeders' group had obtained a low interest loan of about 16 billion kip and was confident they could provide sufficient pigs for consumption this year.
A number of Lao people have expressed concern that the demand for food will increase this year while supply will remain unchanged, meaning food prices will rise.
The price of fish, chicken and pork in Vientiane markets has already increased, with food prices in Laos rising about eight percent in December compared to the same period last year.
The government last year provided low interest loans for agricultural processing groups in the wake of animal disease outbreaks to help them get back on their feet.
The government discou-rages the import of animals as this not only causes a cash outflow but also brings in animal diseases from other countries.
vientiane times
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