7 Nov. 2023 – At Government House, Mr. Chai Watcharong, spokesman for the Prime Minister’s Office, revealed that the Cabinet meeting (Cabinet) approved two measures to stabilize the price of paddy. which is the granting of loans by the Bank for Agriculture and Agricultural Cooperatives (BAAC) to assist farmers in absorbing the amount of rice from the market, divided into
1. Loans to delay the sale of rice paddy
2. Loans to collect rice and create additional value
Both measures have a total credit limit of more than 55,038.96 million baht, divided into a BAAC credit limit of 44,437 million baht and a shortfall payment limit of 10,601.96 million baht.
Mr. Chai said that the reason for issuing measures to help farmers is the result of the current price of paddy. Except for jasmine rice The market price of rice is quite good. But the price of jasmine rice that will gradually come out in November 2023 in both the northeastern and northern regions is approximately 9.5 million tons.
The market price of jasmine rice is approximately 14,800 – 15,000 baht per tonne, which is dry rice with a moisture content of 15%. But in reality, when farmers harvest the rice and sell it, It has a humidity level of 25% and is priced at only 12,000 – 12,300 baht per ton. The current market price is only 11,000 baht per tonne, which is considered lower than the fair price that should be obtained.
For this reason, the Ministry of Agriculture and Cooperatives and the Ministry of Commerce Therefore, measures have been created to intervene in prices by issuing 2 measures to help absorb the amount of rice. in order to increase the price of rice The details are as follows:
1. Loans to delay the sale of rice paddy
The goal is to absorb 3 million tons of rice into the market by allowing farmers’ institutions and farmers with their own barns to store paddy in the barns for 5 months to wait for sale. The government will provide credit by specifying credit for jasmine rice at 12,000 baht per tonne, jasmine rice outside the area at 10,500 baht per tonne, Tumthani jasmine rice at 10,000 baht per tonne, rice at 9,000 baht per tonne, and glutinous rice at 10,000 baht per tonne.
As well as helping with the deposit fee of 1,500 baht per ton (cooperatives receive 1,000 baht per ton + farmers receive 500 baht per ton). There is a credit limit of 34,437 million baht and a shortfall payment limit of 10,120.71 million baht, scheduled to start from 1 October 2023 to 29 February 2024.
2. Loans to collect rice and create additional value
There is a target of 1 million tons by allowing farmer institutions to collect. Buying paddy from farmers with a loan limit of 10,000 million baht and an interest compensation limit of 481.25 million baht. The cooperative will pay 1% interest and the government will help with 3.85% interest for a period of 15 months. As for the 4.85% interest compensation from the BAAC, the government It will help bear the interest burden of 3.85%, while farmer institutions will bear the burden of 1%, starting from 1 October 2023 to 30 September 2024.
“This measure will allow farmer institutions to buy, compete and intervene in the market. By purchasing at the pilot price jasmine rice at 25% humidity, priced at 12,200 baht per tonne when sold. If there is profit, 300 baht per tonne will be shared with the farmers, which will result in the farmers receiving a total of 12,500 baht per tonne, which will be better than before without intervention. Because it will allow farmers to get an additional 1,500 baht from the market price,” Mr. Chai said.
Mr. Chulaphan Amornvivat, Deputy Minister of Finance, said that measures to delay rice entering the market this time Initially, in the 2023/24 production season, it is expected that there will be 10 million tons of rice production in the market, which assistance will be provided. Through cooperatives and agriculture with granaries and farmers directly It is expected to be able to absorb 4 million tonnes of rice, which will have a significant effect on rice prices, preventing them from falling.
2023-11-07 08:38:40
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