BAAC sets aside 16 billion baht to help farmers and farmer’s groups

[rooster59]

BAAC sets aside 16 billion baht to help farmers and farmer’s groups

BANGKOK: The board of the Bank of Agriculture and Agricultural Cooperatives has decided to set aside more than 16 billion baht budget to implement three projects aimed to help farmers and to stabilize the price of paddy for 2016-17 production.

The first project is to make use of some 12.5 billion baht in credits from BAAC to be provided to agricultural cooperatives, agricultural groups, community enterprises as well as community rice centres to buy paddy from farmers for processing and for sale. This project is due to start on October 1 and to end on September 30, 2017.

Under the project, the credit recipients will be charged an interest rate amounting to MLR rate minus one percent which will be absorbed by the bank with the government absorbing another three percent interest rate. The credit period is one year.

The second project aims to provide low-interest loans to farmers who are customers of BAAC or members of farming institutes so they can start cultivation for the 2016-17 crop years. The loan project started on January 1 and is due to end on December 31 with the exception of the southern region where the loan extension will end on March 31, 2017. The amount of loans total 1.4 billion baht and the low interest loan extension period is six months.

The third project aims to help farmer groups with combined huge land plots. Altogether 2.1 billion baht has been set aside and the project will start on May 1 and is due to end on January 31, 2018. The interest rate amounts to MLT minus one percent with BAAC absorbing 0.1 percent of the interest rate while the government will compensate the bank 3.9 percent.

Source: http://englishnews.thaipbs.or.th/content/162434

-- Thai PBS 2016-05-08

[jaltsc]

"The board of the Bank of Agriculture and Agricultural Cooperatives has decided to set aside more than 16 billion baht budget to implement three projects aimed to help farmers and to stabilize the price of paddy for 2016-17 production."

Another band-aid treatment for a mortal wound. The only way an agricultural product is able to survive is if it's competitive on the international market. Other countries have distanced themselves from Thailand, whether it be through higher subsidies, manipulating their currencies, more successful agricultural methods, etc. Thailand's main motivation appears to have more to do with politics than with a viable agricultural program.

Edited May 8, 2016 by jaltsc

[marcusd]

I read someone saying in another thread about Thia wages - that Thailand has agriculture so it can survive. What rubbish. And this is more proof. It seems to me every government subsidizes the farmers.

Rerligion is usually used as a means of placating the masses but here it is subsidies and religion and the other thing that is about to change from one older one to one younger one - get the drift?

[somo]

I read someone saying in another thread about Thia wages - that Thailand has agriculture so it can survive. What rubbish. And this is more proof. It seems to me every government subsidizes the farmers.

Rerligion is usually used as a means of placating the masses but here it is subsidies and religion and the other thing that is about to change from one older one to one younger one - get the drift?

I think it is the other way around. Thailand needs it's agriculture sector to survive. Partly because so many people are employed in it and partly for political reasons. In both senses It is no different to many other countries ie the USA and the EEC. Agricultural subsidies are open to corruption everywhere but Thailand is possibly more so. However even if only half of the giveaways end up in the right hands then it is worth it. The other half just gets recycled through he economy in any case. Giving this sector of the economy a boost is one of the positive legacies of Mr. T

[Brer Fox]

Too true, the government subsidizes the farmers and why not. Problem is that the subsidies go toward chemicals.

The Vietnamese have now woken up.

Wonder what happens when the Thai people will realize the quantity of chemicals and poisons they are consuming themselves via their own fruits and vegetables on the supermarket shelves. Thai supermarkets couldn't care less.

http://www.thanhniennews.com/business/popular-in-vietnam-thai-fruits-vegetables-fail-toxic-test-at-home-61944.html

Another export market stuffed. The gurlger is fast approaching

[Hawk]

Loans and yet more loans. Loans to pay off the old loans. The debt will simply escalate completely out of control.

[BSJ]

The government should stop the BS and just give the farmers money! We need money to live.

[Brer Fox]

Loans and yet more loans. Loans to pay off the old loans. The debt will simply escalate completely out of control.

Loans and debt and debt repayment mean nothing to a military dictatorship. Just get the money printing presses to go a bit faster.

[Srikcir]

the credit recipients will be charged an interest rate amounting to MLR rate minus one percent which will be absorbed by the bank

the government absorbing another three percent interest rate

BAAC has really liberalized its banking policies from January 2014. At that time the BAAC Board rejected loans to the government to finance a rice mortage program. It said that savings of bank customers should not be used to fund a rice morgage program.

What's changed?

[SoilSpoil]

The government should stop the BS and just give the farmers money! We need money to live.

Yes money grows on trees.

[phoenixdoglover]

the credit recipients will be charged an interest rate amounting to MLR rate minus one percent which will be absorbed by the bank

the government absorbing another three percent interest rate

BAAC has really liberalized its banking policies from January 2014. At that time the BAAC Board rejected loans to the government to finance a rice mortage program. It said that savings of bank customers should not be used to fund a rice morgage program.

What's changed?

I was just a misunderstanding. I hear there is a lot of that going around.