Govt offers $27mn emergency loans to struggling corn farmers

The government has made $27mn in emergency funds, initially intended for rice sector, available for struggling corn farmers at a 5% annual interest rate to help prop up low market prices and free up liquidity after farmers protested earlier this month, a state official said yesterday. Kao Thach, CEO of the government-backed Rural Development Bank (RDB), said the loan package can only be utilized during harvest season, and the money is expected to be return to the government coffers by the end of the year. Lao Sunchea, director the Sala Krao Cassava Cooperative in Pailin province, said that since the government announced its help, the price of corn has increased to 3.8 baht per kilo in his province. Still, he believes a lack of dry warehouses and silos for corn storage remains a considerable challenge that traders cannot immediately overcome. (Source: Phnom Penh Post)