Rice, palm oil price guarantees fixed, rubber next

By The Nation

 

 

The Cabinet on Tuesday approved a Bt34.873-billion budget to guarantee growers a decent price on their rice and palm oil.

 

Deputy government spokesperson Ratchada Thanadirek said the rice budget of Bt21.495 billion was for 892,000 farm families registered with the Agriculture and Cooperatives Ministry. 

The other Bt13.378 billion is for 300,000 registered palm-oil planters.

 

Applicable this month through September 2020, the oil-price guarantee is Bt4 per kilogram of product containing 18 per cent of oil per kilo. It’s based on the market price average of Bt3 per kilo plus Bt0.25 for transportation costs, allowing a price spread of Bt0.75. 

 

Families producing palm oil on 25 rai or less are eligible, with the funds deposited in their Bank for Agriculture and Agricultural Cooperatives accounts.

 

The Cabinet also sanctioned long-term price-management measures such as using palm oil to produce electricity and diesel B20.

 

The rice price guarantee applies for one year starting in October and covers five types:

 

• • Paddy rice grown at 15 per cent humidity, priced at Bt10,000 per tonne with an income guarantee for not more than 30 tonnes per household or not more than 40 rai
• • Glutinous rice, guaranteed Bt12,000 per tonne up to 16 tonnes or 40 rai 
• • Jasmine rice, guaranteed Bt15,000 per tonne up to 14 tonnes or 40 rai
• • Fragrant rice grown outside the coverage area, assured Bt14,000 per tonne up to 16 tonnes or 40 rai
• • Pathumthani fragrant rice, guaranteed Bt11,000 per tonne up to 25 tonnes or 40 rai.

 

Another Bt25.842 billion was earmarked on Tuesday to support production costs averaging Bt500 per rai, up to 20 rai per family. It will apply to 4.3 million farm families.

 

A further Bt18.5 billion was set aside in an unallocated budget for farmers already hit by drought, to be used before September 30.

 

Price guarantee proposals for rubber will come before the Cabinet within the next two weeks, Deputy Prime Minister and Commerce Minister Jurin Luxanavisit said, with a likely ceiling of Bt26 billion.

 

Source: https://www.nationthailand.com/business/30375455

 

-- © Copyright The Nation Thailand 2019-08-27

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16 hours ago, snoop1130 said:

The Cabinet on Tuesday approved a Bt34.873-billion budget to guarantee growers a decent price on their rice and palm oil. (my italics)

Doesn't this (again) refute Prayut's philosophy of using a market-oriented production principle to stabilize the price announced in July 2019? Farmers were asked to accept the government’s guidelines intended to solve the problems. http://thainews.prd.go.th/en/news/detail/TCATG190714100922974

But why accept the government's guidelines when it almost immediately abandons those guidelines when confronted?