Water shortage forces Vientiane farmers to plea for mercy
 
Vientiane Times, 12 Mar 2010
 
Almost 60 families from Donxingxou village are asking the Agricultural
Promotion Bank to postpone loan repayments until the end of next
year's dry season because a lack of water for irrigation has destroyed
their crops.
 
Eighty percent of those families are facing drought conditions because
of unusually low water levels in the Mekong River.
 
“We will repay our debt, but the bank should postpone the repayment
until next dry season,” farmer Mr Chansamone Thapsombat said
yesterday.
 
Most borrowed money from the bank to invest in their farms in
Donsingxou village, Sikhottabong district, Vientiane.
 
But now the farmers in Donsingxou are struggling to meet the
repayments because they face serious problems caused by a lack of
water.
 
About 40 of the 60 families borrowed money to buy fruit trees and
vegetable seeds, but this year their crops have failed because there
is not enough water for irrigation.
 
Some farmers even bought electric pumps and pipes to bring water to
their fields, which are about 500m from the Mekong, but they must turn
off the machines for 30 minutes every four hours so they don't become
overheated.
 
Some of those who didn't buy pumps have abandoned their fields, and
have turned to fishing to earn an income.
 
The bank provides loans to Donsingxou farmers for agricultural
purposes, providing the amount does not exceed more than 10 million
kip in eight months.
 
Usually, the farmers invest around 8 or 10 million kip, and still
claim an income of about three or four million after they repay debt
and interest to the bank, Mr Chansamone said.
 
“But our fruit trees and vegetables are not growing well this year
because of the lack of water,” he said.
 
“I have two hectares of crops that I hope I won't lose, but I am
worried that I won't have enough money to pay the bank.”
 
The bank provides the loans at an eight percent interest rate.
However, farmers who have taken out loans are generally very poor and
dependent on their crops for income.
 
The famers are now preparing documents to submit to the Agricultural
Promotion Bank to postpone debt payments until next year's dry season.
 
The bank said their policy does enable them to help the farmers.
 
“Until now, we haven't seen any documents from the Donsingxou farmers
asking for a postponement,” the Deputy Chief of Credit, Mr Oula
Phonnavongsa, told the Vientiane Times yesterday.
 
If the bank receives the documents, they will send staff to
investigate the claims to determine their validity, and assist if
necessary, he said.