With a view to develop agriculture, the Ministry of Agriculture and Irrigation, in line with the market- oriented economy, is undertaking necessary measures to maximize private domestic participation, to attract foreign investment and accelerate growth and development. The local and foreign entrepreneurs are invited to invest and establish mutually beneficial trade and business in the form of Joint Venture or 100% investment in the following areas:-

 

    * Land utilization
    * Establishment of Agro-based industries
    * Assembling and manufacturing of light agricultural machinery and small farm implements
    * Manufacturing of agricultural inputs and related support products
    * Trading of Agricultural commodities, input supplies and machineries

 

Land Utilization
The Central Committee for Management of Culturable Land, Fallow Land and Waste Land, which was formed in 1991, grants approvals to both local and foreign investors with the expertise, technology and capital who desire to invest in agricultural undertaking in Myanmar. The Central Committee's approval of up to the maximum of 5,000 acres, allows these investors to cultivate or utilize cultivable land, fallow land and waste land for agricultural purposes.
           
Duration has been fixed for a maximum of thirty years for cultivation and utilizing land for plantation crops and orchard, livestock and poultry farming and aquaculture purposes. The period may be extended upon negotiation depending on type of project or nature of activities

 

Incentives in Land Utilization
Exception from payment of Land revenue shall be granted for a period of 2 to 8 years from the lease depending upon the type of the agricultural crops, livestock breeding and Agriculture; and at least 3 years of income-tax exemption may be granted from the year of commencement of commercial run of the business carried out on land developed and invested.
       
Potential land area in various localities on the basis of soil type, weather and temperature has already given in Chapter1.

ESTABLISHMENT OF AGRO-BASED INDUSTRIES
The policy of the Government is to promote development of agro-based industries together with increased production of agricultural commodities. Under MOAI, several industries such as jute, sugar, cotton, sericulture, pesticide, rubber, farm machineries and implements and canning factory are being operated. At present, setting up of new industries or upgrading on-going industries are welcomed and MOAI is encouraging private investors to establish plantation and suitable agro-based industries. Types of plantation and related ventures are listed below:-

(a) Plantation
Perennial and seasonal crops- rubber, oil palm, and cashew nut, horticultural crops- mango, banana, pineapple, etc. - are welcomed.

(b)Sugar mills
MOAI is currently running 8 sugar mills with the maximum crushing capacity of 90,000 MT, and exporting thousands of sugar annually. Since 1997-98, new 8 sugar mills are being constructed in different locations in the forms of Joint Venture with foreign entrepreneurs.

(c) Cotton industry
Investment in renovation and modernization of cotton ginning, delinting, baling factories are welcomed. Also, cotton yarn manufacturing and cotton seed oil industries, and cocoon production, silk production and weaving have great potentials to invest.

(d) Jute Industries
There are altogether 13 jute industries including jute mills, grading and baling factories, and jute carpet products factory under MOAI in different localities. Jute-related products such as jute bags, carpet backing cloth, jute carpet, cotton carpet, polypropylene carpet, yearns, jute handicrafts, etc,. are being exported. Opportunities are still available to establish jute-related industries in Myanmar.

(e) Rubber Industry
According to the increased area, improvement of crumb rubber production, other rubber products and rubber wood industries is necessary in Myanmar while suitable land for establishment of commercial estates are also available.100% investment as well as JV with Government or private sector for those are highly welcomed.

(f) Other related industries
Formulation of new pesticide plants, seed processing plants, edible oil mills, food processing factories and animal feed plants are also highly considerable to investment for the fulfillment of local demand and export.

ASSEMBLING AND MANUFACTURING OF LIGHT AGRICULTURAL MACHINERIES AND SMALL FARM IMPLEMENTS
The Increasing sown area of main crops and cropping intensity have led to high demand for farm machineries. Assembling and manufacturing of the following machinery and farm implements are potential areas to be explored.

         Power Tiller, 3-10 HP, and 12 HP
         Walking Tractor 5-6 HP
         Water pumps (high lifts & low lifts)
         Sprinklers and drip irrigation sets
         Transplanters, Threshers, Seeders, Weeders, Dryers and Farm Storage facilities

TRADING OF AGRICULTURAL COMMODITIES, INPUT SUPPLIES AND MACHINERIES
Export Items
Rice, Maize, Black gram
Green gram, Pigeon pea, Chick pea
Sesame, Onion, Tamarind, Raw Rubber
 Vegetable & Fruits

Import Items
Power Tiller, Hand tractor
Fertilizers, Pesticides, Herbicides
Diesel oil, Dumper, Loader and
Spare parts, Water pumps
Hydraulic excavators, Gear box assembly for hand tractor,
MS rod & mild steel, Hybrid and quality seeds
       
OTHER BUSINESSES
Businesses other than agricultural production, trade or agro-based industries are also welcomed to investors. Some examples are described as follows:-
       (1) Establishment of recreation centre & resorts, golf club, motels, etc., around the several dams with beautiful            landscape.
       (2) Feasibility study of irrigation projects, implementation of projects, credit systems.
 
INCENTIVES
The following list indicates incentives for foreign investors provided by Foreign Investment Law. Foreign investors in agriculture are also eligible to obtain incentives related to agricultural business.
    * Exemption from income taxes for up to three years
    * Accelerated depreciation of assets
    * Income tax relief on reinvested profits
    *  A reduction of upto 50% on income taxes due on products exported from Myanmar.
    * Exemption from customs duty on machinery and other capital goods imported as part of operations
    * Government guarantees against nationalization.
    * Repatriation of profits and invested capitals.
    * Carry forward losses for upto three years
    * Exemption from customs duty on raw materials imported for the first three years of operations.