Govt considers Bt100 billion in subsidies for rice farmers

By The Nation

 

 

The National Rice Policy Committee has earmarked about Bt100 billion to provide subsidies for rice farmers for the 2020-2021 crop year.

 

Ratchada Thanadirek, deputy government spokesperson, said the committee chaired by PM Prayut Chan-o-cha, agreed in principle to provide subsidies to rice farmers from September 1 to May 31, 2021. 

 

Initially the government will launch the rice-production enhancement project, under which each farming family will be granted Bt1,000 per rai, limited at 20 rai. About 4 million families will get financial aid worth a total of Bt56 billion. This subsidy has been increased from last year’s Bt500 per rai offer, she told the press after the meeting on Thursday (June 18). 

 

The next step will be providing financial aid to delay the release of 7 million tonnes of paddy rice in the market in a move to shore up the price, which usually drops when large amounts of paddy flows into the market in the beginning of the harvest season. 

 

This is estimated to cost a total of Bt36 billion, of which Bt30.3 billion will be spent on loans and Bt5.7 billion in cash transfers. Rice traders who stockpile rice, will also get a 3 per cent subsidy on interest rates, which will cost the government a total of Bt610 million. 

 

The third step will be organising rice marketplaces worth about Bt2.8 billion, she said. 

 

The government is also planning to set aside Bt2.34 billion for the income-guarantee programme, though some members of the committee are proposing an extra Bt2 billion spending on this scheme, so the new proposal will be submitted later. 

 

Farmers will also be paid the difference between the market price and reference price set by the government. 

 

Deputy Agriculture and Cooperatives Minister Prapat Phothasuthon said some farmers did not benefit from the income guarantee last year, and that is why the government may need to spend an extra Bt2 billion on this scheme. 

 

The government last year offered a price guarantee of Bt15,000 per tonne for fragrant rice, Bt14,000 for fragrant rice outside designated areas, Bt10,000 for ordinary rice and Bt12,000 for glutinous rice.

 

Rice production globally for the 2020-2021 crop year is likely to rise by 8.1 million tonnes to 501.96 million tonnes. While global rice stock will rise by 3.83 million tonnes to 184.18 million tonnes. The largest stock is held by China, followed by India and Thailand.

 

So far, Thailand has exported 2.5 million tonnes of white rice, far from the targeted Bt7.5 million tonnes in the second quarter.

 

Source: https://www.nationthailand.com/news/30389880

 

-- © Copyright The Nation Thailand 2020-06-19

 

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4 hours ago, webfact said:

Deputy Agriculture and Cooperatives Minister Prapat Phothasuthon said some farmers did not benefit from the income guarantee last year, and that is why the government may need to spend an extra Bt2 billion on this scheme. 

 

The government last year offered a price guarantee of Bt15,000 per tonne for fragrant rice, Bt14,000 for fragrant rice outside designated areas, Bt10,000 for ordinary rice and Bt12,000 for glutinous rice.

But Joe Farmer Never gets the price stated by the Gov. It's the wholesalers and the millers that make the money.

 

This is purely for their benefit and not for the lowly farmer surely. ????

Why not 'cut to the chase' for the Thai government to nationalize all of agriculture, what with the constant 5+ years stream of subsidies to the whole agricultural industry?

 

getting near YINGLUCK scheme / scam, but she was ousted...

Paying to put rice into storage to inflate the current market price.... wasn't that one of the present Govt's major gripes with the previous Govt scheme?

Jeepers. More subsidies. 

 

Rice prices never go down. plant food goes up, weed killers are banned, costs are rising. Soon it will no longer be viable to grow, like cassava is now....

 

Subsidising the rice prices paid to the farmer doesn't reduce the costs to the consumer.

9 hours ago, webfact said:

Govt considers Bt100 billion in subsidies for rice farmers

Go on and pay subsidies to All farmers and people that make Less money than the  Last couple years.

see what happen they will get Lazy and expect the Government to look after them. Plant more rice plant more rubber trees more durian more mangoes more of everything Flood the Market /Export. Don't matter the price on the market . The Government will Bail us out .What about growing different crops .Other countries had to do that. That seems to be the problem People Don't want to Change.

This government is borrowing huge (HUGE) quantities of money that the tax payer will have to pay for. What are we getting for our money.....Yingluck was convicted for handing out money to farmers.

The PM (government) could be genuinely accused of pork barreling in my opinion....which seems to be a Thai affliction if we go back through the years.  In my opinion it is completely unnecessary to act his way if farmers actually got a fair price from the millers. 

7 hours ago, Bender Rodriguez said:

getting near YINGLUCK scheme / scam, but she was ousted...

Comparing apples and oranges.

 

Yingluck nearly bankrupted the country, and ruined millions of tonnes of rice in the process (when they tried to store it, to raise the price worldwide).

1 hour ago, Pedrogaz said:

This government is borrowing huge (HUGE) quantities of money that the tax payer will have to pay for. What are we getting for our money.....Yingluck was convicted for handing out money to farmers.

Agreed stupid that they now again go for a rice subsidie. 

 

However this is more in favor of small farms as they limit it to 20 rai. Before the wealthy farmers benefited too. But they are just trying to placate the farmers.

holy Khao !!