In Scope of "Food Revolution," Soft Loans to Farmers Total MNT 440 Billion

2023-09-11 12:12:38

Ulaanbaatar, September 11, 2023 /MONTSAME/. The President of Mongolia Khurelsukh Ukhnaa visited the farm land of Selenge Taria LLC of MTS Group in Tsagaannuur soum of Selenge aimag.

In 2023, farmers planted crops on 369.3 thousand hectares, of which wheat on 345.4 thousand hectares, potatoes on 18.4 thousand hectares, vegetables on 13.9 thousand hectares, fodder on 89.3 thousand hectares, and oilseeds on 131.7 thousand hectares, as well as fruits and berries on 7 thousand hectares respectively. In total 629.6 thousand hectares were cultivated.

According to the preliminary estimates, it is possible to meet 100 percent of wheat and potato demands, and over 80 percent of vegetable needs from the domestic harvest, as presented to the President of Mongolia.

Compared to the crop production of last year, wheat production will increase by 17 percent, vegetable production by 18.3 percent, and fodder by 42.4 percent.

Selenge Taria LLC has 12,000 hectares of circulation area and collects 20-22 quintals of wheat and crops from each hectare. It supplies with grain such companies as Ulaanbaatar Guril LLC, Uguuj Guril LLC, Uyog Guril LLC, APU JSC, SBB LLC and Mind Tech LLC.

As part of the "Food Supply and Security" National National Campaign, Selenge Taria LLC participated in the "Primary Seed Center and Thresher Construction" Project and received a soft loan.

In the scope of the Project, a new, fully automated for drying and cleaning, thresher with a total capacity of 7,500 tons is being built in Tsagaannuur Soum of Selenge aimag.

The General Director of MTS Group P. Bat-Erdene expressed their gratitude for the timely and real support to the enterprises of the sector within the framework of the national movement, due to which they began get benefits.

In the frame of the National National Campaign by its Resolution No.36, the State Great Khural approved to invest and make financing of MNT 1.7 trillion in the food and agriculture sector over the next five years.

To this end, ten commercial banks are providing loans with annual 3-5 percent interest rate and 3-5 years’ term to industrialists, totaling up to MNT 1 trillion.  

Up to the present, over 1,700 enterprises have received investment and working capital loans of about MNT 440 billion. This includes 1,200 enterprises operating in the crop production, and they received concessional loans of MNT 150 billion.

Within the bounds of the "Food Supply and Security" National National Campaign, income tax has been reduced by 90 percent for enterprises with an annual sales income of less than MNT 1.5 billion, and certain types of food products have been exempted from VAT.

In addition, new equipment for the processing of food and agricultural raw materials, which is registered as the fixed assets of the plant, will be exempted from customs duties until 2027.