An Giang province: More credits for pangasius industry
(pangasius-vietnam.com) Pangasius farmers and processors do not have to use their cultivated land or properties for financial justification to borrow money from banks. Loans will be offered to borrowers from the pangasius sector on the base of their total investment in fish production, according to a new pilot policy of An Giang province. However, fish farmers and processors must join in pangasius integrated production chain to be beneficiaries.
According to the current regulations, with their cultivated land, pangasius farmers are able to borrow maximally VND300 million per hectare while they need a total of VND7 billion to invest in a hectare of fish farming. This was the main reason why farmers were still unable to keep fish farming when credits tightened by banks. Many fish processors are facing both lack of raw fish and money.
Farmers sign contracts with processing companies will receive the guarantee of them to borrow loans up to 80 percent of total farm investment with preferential interest rate. Loans will be paid by processing companies after the fish harvest.
The new credit source is planned to be kicked off as late of November 2013 after surveys on fish farms, processing facilities and feed suppliers are finished. This move will encourage fish farmers and processors to reinvest in the production chain in the context of serious raw material shortage, which has been causing persistent troubles for a range of processing plants In Mekong Delta. An integrated production chain from pond to table will make a great contribution to stability and higher value of pangasius products in the global market.