Bt18 bn more for rice farmers

THE CABINET will today consider a plan for Bt18 billion to be used to help subsidise the price of Pathum Thani and white rice paddy from the current main-crop harvest, after approving a Bt35.9-billion budget last week to help farmers growing Hom Mali rice. 
The move followed a special meeting by the National Rice Policy Committee, which that agreed to support farmers growing Pathum Thani and white rice in the main-crop season, which lasts until February 28. 
Prime Minister Prayut Chan-o-cha, who chaired yesterday’s meeting, said the government would give maximum support to farmers who hit hard by the plunge in prices for rice. But he said the state subsidies were only a temporary measure as the government also needs to implement long-term measures to address the issue based on supply and demand, so that the country’s rice production is balanced.

Overall, he said, the government would facilitate a fair relationship between all stakeholders – from farmers and middlemen to millers and exporters – as well as increasing the value of Thai rice.
Commerce Minister Apiradi Tantraporn said the plan to help farmers growing Pathum Thani and white-rice paddy would need a budget of about Bt18 billion. Half of that would be soft loans while the other Bt9 billion would be used to subsidise harvesting and storage costs.
The government would put no limit on the total volume of rice in the pledge, but would limit the volume for each farmer household – to not over 15 rai (2.5 hectares).
Farmers growing Pathum Thani rice would get Bt11,300 for each field, while those growing white rice would get Bt10,500 for their paddy.
The project would be like the previous project to help farmers growing Hom Mali rice. The government will offer low-interest loans – at an expected rate of about 3 per cent for growers of both Pathum Thani and white rice. 
White rice paddy is selling at Bt6,200 per tonne, while the government’s pledging price is Bt7,000. 
Pathum Thani rice paddy is selling at between Bt5,800 to Bt7,000 per tonne, while the government’s pledging price is Bt7,800 a tonne. 
Bt7,800 of the Bt11,300 for Pathum Thani rice paddy will be paid to farmers to store their paddy in barns, while white rice farmers will receive Bt7,000 as a pledging price. Farmers growing Pathum Thani and white rice will receive other subsidies equally – Bt2,000 for harvest and improvement costs, plus Bt1,500 for storage costs. 
However, farmers who have no barns to store the paddy will not receive the Bt1,500 payment for storage costs. 
About nine million tonnes of white rice paddy, and four million tonnes of Pathum Thani paddy are expected to be harvested during the current main crop.
Meanwhile, the Commerce Ministry hopes to increase international demand for rice and tapioca by organising a business matching event in Bangkok for Thai traders to meet foreigner buyers from November 13-16. So far, 290 rice and tapioca traders from 29 countries have confirmed they will attend the event, while 110 local traders will also take part.
The Agriculture and Agricultural Cooperatives Ministry also proposed longer-term measures to help rice farmers, including cutting the amount of land sown with rice and planting alternative crops, to boost price of rice, caused by over-production in recent years. Currently, the government has a record eight million tonnes of rice in state warehouses, and this has hit domestic prices as export demand for Thai rice has not risen.
Unlike the previous Yingluck government’s rice-pledging scheme, the Prayut government resorted to a less generous package to help farmers by offering Bt10,500 to Bt13,000 a tonne for Hom Mali and other rice paddy, compared to the Bt15,000 per tonne offered by the previous government.