The government vows to expand Thong Fah Pracha Rat after the scheme raked in more than B19bn over six months
40,000 Thong Fah Pracha Rat outlets eyed by year-end
Thegovernment vows to expand and upgrade the Thong Fah Pracha Rat low-cost shops after the scheme netted more than 19 billion baht in sales over a six-month period.
Commerce Minister Sontirat Sontijirawong said that from October 2017 to March 27 more than 69 million consumer goods items were sold through Thong Fah Pracha Rat shops, generating sales of over 19 billion baht.
Best-selling items included milled rice, vegetable oil, eggs, fish sauce, seasoning and other products for daily use.
The Commerce Ministry kicked off the first phase of the scheme on Oct 1, with more than 20,000 shops registering with the Commerce Ministry as Thong Fah Pracha Rat shops. Those shops, in turn, had electronic data capture (EDC) devices installed to read welfare cards.
The shops were initially designed to be able to expand in the second phase, distribute local products and promote small and medium-sized enterprises, particularly micro-SMEs in remote areas.
The Thong Fah Pracha Rat shops are part of a 41.9-billion-baht aid package approved by the cabinet on Aug 29 of last year, aimed at 11.7 million low-income earners — 5 million of whom live below the poverty line. Apart from providing low-priced consumer goods, the package also includes allowances for rides on public buses and trains, as well as subsidised utility bills.
Under the aid package, the government transfers 200-300 baht a month to each welfare smart card. Recipients earning less than 30,000 baht a year get a monthly allowance of 300 baht, while those with annual earnings of 30,000-100,000 baht receive 200 baht to buy discounted goods at Thong Fah Pracha Rat shops and other designated stores.
Each cardholder also receives 1,500 baht a month to subsidise transport and 500 baht for inter-provincial public buses, third-class trains, and local public buses and electric trains.
The government has also offered subsidies to participating shops for EDC installation.
The cabinet in January approved 35.7 billion baht for the second phase of the welfare scheme, aiming to help 1 million people cross the poverty line.
Some 5.3 million out of the 11.4 million recipients of the government’s welfare and subsidy scheme are living below the national poverty line, earning less than 30,000 baht a year.
The second phase will see the government allocate 35.7 billion baht to finance 34 projects that aim to raise the income of low-wage earners.
The Commerce Ministry has pledged to increase the number of Thong Fah Pracha Rat low-cost shops in the second phase by more than 20,000, doubling the number of EDC-equipped shops to 40,000 nationwide by year-end.
Mr Sontirat said the ministry is going to talk with manufacturers to help supply products to Thong Fah Pracha Rat shops’ promotional corners, which will be set up some time this year, offering goods at discounted prices.
Mr Sontirat said the ministry also plans to urge participating shops to set aside their corners for community-made products, helping create distribution channels for local wares.
Apart from increasing the number of shops, the ministry also seeks to add more mobile Thong Fah Pracha Rat grocery shops operated via pickups.
The ministry has initiated a franchise scheme to encourage rural dwellers to open franchises to raise their income, and the Government Savings Bank has agreed to provide 20,000 baht in loans to each participant, Mr Sontirat said.
The scheme has already drawn 5 million registrants, he said, adding that the ministry is also revving up efforts to promote business owners, community enterprises and cooperatives to make the best use of existing online trading platforms and the ministry’s own business-to-business e-marketplace, Thaitrade.com.