Grant Aid to Mongolia to Increase Food Production

July 10, 1999

  1. The Government of Japan has decided to extend to the Government of Mongolia a grant aid of up to 500 million yen to increase food production. Notes to this effect were exchanged on July 10 (Sat.) in Ulaanbaatar between Foreign Minister Masahiko Koumura of Japan and Minister for External Relations Nyamosor Tuya of Mongolia, in the presence of Prime Minister Keizo Obuchi of Japan, now visiting Mongolia, and Prime Minister Janlavin Narantsatsralt of Mongolia.

  2. Agriculture in Mongolia has been carried out in the large-scale state farms under its centrally planned economy. Because of the confusion in the agricultural production system caused by the shift to a market economy from the beginning of the 1990s and the discontinuation of aid caused by the economic confusion in the former Soviet Union, Mongolia now faces with difficulties in the maintenance and purchase of agricultural machinery, resulting in extremely low agricultural productivity.
    For these reasons, the Government of Mongolia formulated a program to increase food production, with a view to increasing production of wheat, the staple grain of the country, and improving the self-sufficiency rate, and asked the Government of Japan for the funding necessary to procure agricultural machinery to implement this program.


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