Farmers offered fee relief

21:18' 13/04/2008 (GMT+7)
VietNamNet Bridge - Millions of farmers across the country stand to benefit from a new Ministry of Finance policy for irrigation fee waivers starting this June, according to the ministry’s newly issued circular.
Circular 26/2008/TT-BTC stated that the beneficiaries of the policy would be households and individuals who had received State land and water areas for agriculture, forestry, aquaculture and salt-making, including land allotted by the Government or legally inherited, granted or transferred.
Households, individuals and organisations that are located in areas with difficult economic conditions, according to a previous Government decree, are totally exempt from irrigation fees. These include households with an average income per capita below VND200,000 (US$12.50) per month in mountainous and rural areas, and below VND260,000 ($16.25) per month in urban areas.
Irrigation fees will still be collected in areas where demand for water exceeds available supplies, with exceptions for farmers living below the poverty line.
"Before this circular was approved, farmers had to pay irrigation fees to State-owned irrigation management companies or to those that were invested in by the State budget. But following this circular, the Government will be responsible for paying those fees to the companies," said Tran Ai Quoc, head of the Water Management Unit of the Department of Irrigation.
According to the statistics supplied by the Ministry of Agriculture and Rural Development, farmers have to pay an average amount of VND250,000 to VND700,000 ($15.60 - $43.75) per year in irrigation fees. The new policy would be of great help in freeing up money for them to re-invest more in production and improve their income.
"I would save up to VND300,000 ($18) each year if I didn’t have to pay irrigation fee. We farmers can use this amount for our children’s books and clothes," said Nguyen Thi Lien, a farmer in Dong Giang Commune, Dong Hung District of Thai Binh Province.
It was estimated that the state would have to spend about VND1 trillion ($62.5 million) to compensate local irrigation units nationwide in order to help them ensure continued operation.
Procedures to identify beneficiaries and areas that would be provided free irrigation will be carried out by local people’s committees and water resource management units, according to the circular. The procedure will be finished by June 30, as required by the Ministry of Finance.

"There will be certain difficulties in implementing the new policy, since the state will have to compensate such a large amount. As the compensation process will likely take a long time, irrigation exploitation and management units will face capital shortages and the water supply may fall short," said Tran Ai Quoc.

"However, this is a very necessary policy in the state’s strategy to boost agriculture development and support farmers. Difficulties arising in implementation will be tackled on a case-by-case basis."