World Bank provides $150m for new rice-growing model

The World Bank will provide a US$150-million preferential credit for farmers in Vietnam and companies buying grains from them under a new rice-production and -consumption model called “joint fields.”

Farmers can borrow for buying seedlings and fertilizers, and companies can get long- and medium-term loans of US$5-10 million for building warehouses to stock grains.

The project will be implemented in 25 places in the Mekong delta starting next year.

The Vietnam Food Association said 16 firms have registered to join the new model, under which many small farmers will join up to farm large tracts of land.

They can use the money borrowed under the program to buy fertilizers and pesticides, will apply tested techniques to grow rice, and sell their harvests to associated firms.

Each company will buy produce from 300 hectares from the summer-autumn and winter-spring crops.

All members of the Vietnam Food Association will be required to take part in the program later.

By Cong Phien - Translated by Uyen Phuong

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