Thailand launches 1.89 billion baht aid package for off-season rice farmers

Commerce Minister Pichai Naripthaphan said on Friday that the subcommittee has approved in principle three measures to be proposed to the committee as follows:

• Extending loans for delaying sales of off-season paddy in 72 provinces at 1,500 baht a tonne. 
• Increasing domestic market channels to support farmer sales in 72 provinces. The government supports management costs of 500 baht a tonne, while entrepreneurs purchase at a leading price of 300 baht a tonne. 
• Paying compensation for rice entrepreneurs, which includes a 6% interest compensation for entrepreneurs who store rice for two to six months, and 200 baht per tonne for entrepreneurs who purchase rice at a price higher than the market price.

Commerce Minister Pichai Naripthaphan

There are also parallel measures to stimulate consumption and reduce 500,000 tonnes of paddy from the market by producing bagged rice for sale at affordable prices, Pichai said.

He said Thailand is requesting China to accelerate the purchase of Thai rice under the agreement at 280,000 tonnes, while opening a new export market in South Africa to reduce rice supply.

The South African market has a high demand for Thai rice, he added.