President Dr Irfaan Ali has announced plans to establish a four per cent short-term credit facility for agricultural producers and maintain a three-month supply buffer to strengthen food security and stabilise prices.
During a meeting with poultry farmers, distributors, retailers and suppliers at State House on Friday, President Ali said the government is negotiating with banks to provide farmers with more affordable financing.
The proposed arrangement would provide a 30-day line of credit at four per cent, compared with existing rates ranging from six to nine per cent.
“Through this mechanism that we are negotiating with the banks, we want the banks to be able to establish line of credit that is at the same percentage, the four per cent we spoke about,” he stated.
President Ali explained that delayed payments often force producers to borrow at higher costs, increasing financial pressures on farmers. “We will also insist on prompt payment. A farmer should not deliver eggs, meat, or poultry, and then wait months to be paid,” he emphasised.
Meanwhile, the government intends to establish a three-month supply buffer as part of wider measures to protect domestic food security and manage temporary shortages.
President Ali stressed that imports would only be used to address temporary supply gaps while domestic production expands.
The initiatives form part of a coordinated purchasing system for eggs, chicken, beef and mutton, aimed at reducing consumer prices while protecting farmers’ returns.(DPI)
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