The Cabinet approves promotion plan on oil palm cultivation

In order to promote the cultivation of oil palm for use in alternative energy production, the Cabinet has agreed to recruit private suppliers in distributing palm oil sapplings to farmers.

The government previously entrusted the Ministry of Agriculture and Cooperatives as the sole supplier of sapplings but will, from now on, invite private planters to register with the Agriculture Department for the project.

Participating producers of the plants will be given a low-interest loan with a maturity period of 15 years.

They must however comply with the set criteria including a compensation of 363 baht per sappling if they fail to supply the young plants every 3 years.

The government will buy back palm oil at no less than 2.50 baht per kilo or at a favourable market price.

Source: Thai National News Bureau Public Relations Department - 26 April 2006

thanks JD, an interesting piece of info.