Bank allocates Bt46 bn to help rice farmers cope with declining prices during harvest

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Bank allocates Bt46 bn to help rice farmers cope with declining prices during harvest
By PETCHANET PRATRUANGKRAI 
THE NATION

 

Rice farmers in Ubon Ratchathani province yesterday take jasmine rice to Muang district, where the grain was being sold for Bt20 per kilogram. Photo from www.facebook.com

 

BANGKOK: -- THE BANK of Agriculture and Agricultural Cooperatives (BAAC) has set aside more than Bt46 billion for a new government project aimed at helping rice farmers and curbing a decline in the price of paddy.

 

BAAC general manager Luck Wajananawat said yesterday that the bank had allocated a Bt46.78-billion budget to provide soft loans to rice farmers – Bt27.41 billion for farmers with white-rice paddy and Bt19.37 billion for those with Hom Mali fragrant-rice paddy.

Farmers who join the government project will receive Bt9,500 in interest-free soft loans for them to delay sale of their paddy for a maximum of five months. They will get Bt1,500 for storing rice in their barns, plus Bt2,000 for harvesting and quality-improvement costs. 

 

Full story: http://www.nationmultimedia.com/news/national/30299107

 

-- © Copyright The Nation 2016-11-04

[RichardColeman]

Well, they'll have it back within a week for the pick-up payment.

[yellowboat]

Wish them the best of luck.  Nothing more worthy than getting out there and sell.

[Kiwiken]

Will only cost them 11BN baht once Yingluck coughs up. 

[williamgeorgeallen]

production needs to be reduced to help prices naturally come back up. all these subsidies and loans (most of which will probably be written off as gifts) dont help in the long term.

[elgordo38]

29 minutes ago, williamgeorgeallen said:

production needs to be reduced to help prices naturally come back up. all these subsidies and loans (most of which will probably be written off as gifts) dont help in the long term.

If Thailand decreases production their competitors will increase. Somebody always fills the vacuum. At least these soft loans will be better than the "hard" loans by loan sharks but in the end they must be paid back and therein lies the rub. QE1 Thai style. 

[Srikcir]

2 hours ago, elgordo38 said:

in the end they must be paid back

Unless the government covers any default?

Ordinarily farmers already in debt could not qualify for additional loans because they fail to meet bank borrowing requirements such as sufficient incme and assets to cover payments. So it would be sensible for a bank, especially the state-owned BAAC, to require a guarantee from the government that principal and interest will be paid back in the case of default. The government simply uses the Thai treasury or its own debt to cover defaults.

[elgordo38]

Just now, Srikcir said:

Unless the government covers any default?

Ordinarily farmers already in debt could not qualify for additional loans because they fail to meet bank borrowing requirements such as sufficient incme and assets to cover payments. So it would be sensible for a bank, especially the state-owned BAAC, to require a guarantee from the government that principal and interest will be paid back in the case of default. The government simply uses the Thai treasury or its own debt to cover defaults.

Sounds like another Yingluck makeover. 

[elgordo38]

21 hours ago, Srikcir said:

Unless the government covers any default?

Ordinarily farmers already in debt could not qualify for additional loans because they fail to meet bank borrowing requirements such as sufficient incme and assets to cover payments. So it would be sensible for a bank, especially the state-owned BAAC, to require a guarantee from the government that principal and interest will be paid back in the case of default. The government simply uses the Thai treasury or its own debt to cover defaults.

Seems like I saw the same scenario play out during Yingluck administration.

[petermik]

They could always try planting rubber trees

[Travel2003]

A bank which helps people?