Rice farmers urged to form consortiums, tap zero interest loans through new Development Bank – President Ali

President Dr Irfaan Ali has called on rice farmers, particularly small-scale producers, to form consortiums and cooperatives to take full advantage of zero-interest, collateral-free loans that will become available through the government’s proposed Development Bank starting in 2026.
The appeal was made during a meeting with residents of Wakenaam Island, where the President outlined how the new financing framework is designed to unlock shared ownership, mechanisation, and value-added services within the agricultural sector, especially for farmers operating on smaller acreages.
“You must have access to all of the benefits that are being created in this society,” President Ali told residents. “Ten small rice farmers can now come together, access interest-free and collateral-free financing, pool their resources, buy a combine, and provide a service for farmers with ten acres or less who need that support.”

Under the new framework, small and medium-sized enterprises (SMEs) will be eligible to access loans of up to $3 million at zero interest and without collateral through the Development Bank, which the government plans to operationalise in 2026.
President Ali explained that the institution will not function as a traditional microfinance body, but rather as a strategic bridge between small entrepreneurs and the formal banking system, enabling business growth, co-financing, and long-term sustainability.
“This is what empowerment looks like. This is what real transformation is about,” he said. “For the first time, government will be ready to co-invest with you in your business ventures.”
Beyond the initial $3 million zero-interest facility, President Ali revealed that the government has already secured agreements with commercial banks to leverage those funds, allowing small business owners and farmer groups to access up to $10 million in total financing.
“We have been able to negotiate with a commercial bank that will leverage that $3 million and lend up to $10 million at less than 3.5 percent interest,” the President said. “That is real access to capital.”
The preferential financing mechanism is expected to encourage equipment pooling, service-based farming models, and shared infrastructure, particularly in rice cultivation, harvesting, and land preparation.

Poultry financing
President Ali noted that the impact of the government’s agricultural and financing policies is already being felt across other sectors.
He disclosed that the Poultry Association has requested talks with the Minister of Finance to explore how cost savings resulting from government initiatives could be passed on to consumers through reduced prices for chicken and eggs.
Those discussions have since expanded to include major fast-food chains, including KFC and Royal Castle, which have reportedly agreed to participate once cost reductions are realised.
“That is how policies work,” President Ali said. “That is how strategic thinking operates. It is not built on a single barrel—it is built on a clearly defined strategy.”
Reaffirming his administration’s commitment to Wakenaam Island, President Ali highlighted the scale of government support already delivered to the farming community.
Earlier this year, he said, nearly 20 agricultural machines were deployed simultaneously on the island, providing five-acre land preparation support for farmers—an unprecedented level of mechanised assistance.
“For the first time, we had almost 20 machines operating on this island alone,” he said. “Isn’t that caring? Isn’t that working in the interest of our farmers?”