15,000-plus seek low-cost shop link

More than 15,000 small-scale retail shops, food outlets, hawkers, stalls and mobile grocery stores have applied for the government’s Thong Fah Pracha Rat shop project to be eligible for state-financed welfare cards.

Whichai Phochanakij, deputy permanent secretary of commerce, said after the government allowed other small retail shops and operators that are not members of the government’s Thong Fah Pracha Rat shops to accept the welfare cards on July 2, more than 15,000 have applied for the scheme. It allows welfare cardholders to pay for their goods and services via mobile payment.

Mr Whichai said the ministry has already submitted 5,000 applicants in the first lot for the Budget Bureau’s approval and expects they could start to accept payment from July 10 onwards.

Earlier in January, the Thai Wholesale & Retail Trade Association called on the government to allow other small retail shops who are not members of the government’s Thong Fah Pracha Rat shops project to accept its welfare cards, saying those shops are reporting lower sales because they did not join the project.

Small retail shops that are not members do not have electronic data capture (EDC) machines installed.

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 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 aims to grow 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 by year-end.