Statistics from the Ministry of Agriculture and Animal Husbandry reveal that only a small number of farmers registered on the agricultural portal have applie have applied for loans. The “Farmer Profit” loan is a scheme developed jointly by the SME Finance Development Corporation and the Ministry of Agriculture and Animal Husbandry to assist those engaged in agriculture and animal husbandry in the Maldives. SDFC states that this loan will help strengthen the country’s economy through the involvement of individuals active in this sector.
According to statistics published by the Ministry of Agriculture, 6,699 farmers are registered in the ministry’s farmer registry. However, the data shows that only 45 individuals have received the Farmer Profit loan, which has been offered since 2019 to promote agriculture. The Farmer Profit loan is disbursed in two categories: loans up to 100,000 rufiyaa and loans from 100,000 to 2 million rufiyaa. Both loan types carry an annual interest rate of 6%. However, the maximum repayment period for loans up to 100,000 rufiyaa is set at 3 years, while loans up to 2 million rufiyaa have a maximum repayment period of 7 years.
According to statistics released by the Ministry of Agriculture last May, a total of 18 individuals had taken loans up to 100,000 rufiyaa under the Farmer Profit loan scheme. These recipients were disbursed a total of 1.4 million rufiyaa. Additionally, 23 individuals had taken loans up to 2 million rufiyaa, with a total disbursement of 14.5 million rufiyaa, as stated by MUHA. While few have taken advantage of the agricultural promotion loans, the government is working on developing an Agricultural Economic Zone to produce food needed for the Maldives domestically and reduce dependence on imports. An agreement for this project has been signed with China Harbor Engineering Company.
