Investor Presentaiton

JICA Rice Overview Low level of mechanization: Three factors hinder mechanization in the sector and contribute to the stagnating rice production $ Difficulties in accessing finances Players along the value chain (farmers, processors, machinery service providers) have challenges securing loans to finance their projects ו 0-1-0 Lack of infrastructure The absence of infrastructure around farming areas (e.g., irrigation, road) prevents development of large- scale production and processing projects Unsecure land ownership Farmland is highly fragmented (majority between 0.5-1.0 ha) with unclear process for acquisition/ownership making it difficult for large commercial farms to rise Implication for machinery suppliers All Difficulties in accessing finance hinder sales. of high-priced machinery and spare parts Farming machinery • Insecurities around land ownership prevent development of commercial farming, thus limiting demand of farming machinery Lack of road infrastructure around farming. areas can limit access to larger machines, further lowering mechanization Processing machinery • Prevalence of small-scale production creates challenges securing sufficient raw materials to ensure full utilization of processing units 57

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