The govern­ment is set to ex­tend farm price guar­an­tees in the 2020-21 sea­son, pledg­ing to splurge B75bn.

Price schemes cover five key cash crops

Bangkok Post - - BUSINESS - PHUSADEE ARUNMAS

The govern­ment looks set to ex­tend farm price guar­an­tees in the 202021 sea­son, pledg­ing to splurge 75 bil­lion baht for schemes cov­er­ing five key cash crops and 7.67 mil­lion farm house­holds.

Com­merce Min­is­ter Jurin Lak­sanaw­isit said the price guar­an­tee schemes for tapi­oca and corn have al­ready re­ceived cab­i­net ap­proval, while those for rice, oil palm and rub­ber will soon be put be­fore the cab­i­net.

“The schemes are ap­proach­ing the sec­ond year and the govern­ment pledges to con­tinue the schemes as long as this govern­ment re­mains in of­fice,” Mr Jurin told rep­re­sen­ta­tives of farm­ers and re­lated of­fi­cials at a sem­i­nar yes­ter­day.

In­come and crop price guar­an­tees are among the key pro­pos­als the Demo­crat Party cam­paigned on dur­ing the gen­eral elec­tion.

The party ear­lier cham­pi­oned a pro­gramme of crop price in­sur­ance and guar­an­teed in­come for farm­ers when it led the coali­tion govern­ment dur­ing 2011-13.

Un­der the in­come guar­an­tee plan, farm­ers re­ceive the dif­fer­ence be­tween in­sured rice prices and bench­mark prices that change ev­ery two weeks in ac­cor­dance with mar­ket prices.

Such a scheme would avoid the bur­den of mil­lions of tonnes of rice stocks, as were ac­crued un­der the Yingluck Shi­nawa­tra govern­ment and later auc­tioned off at a loss.

The first year of the scheme’s oper­a­tion with a com­bined bud­get of 71.2 bil­lion baht ben­e­fited 7.29 mil­lion farm­ing house­holds, Mr Jurin said.

The rice price guar­an­tee scheme worth 23.5 bil­lion baht was ap­proved by the Na­tional Rice Pol­icy Com­mit­tee in July and is be­ing sub­mit­ted to the cab­i­net.

The scheme cov­ers five main types of rice: white rice paddy with 15% mois­ture, hom mali rice paddy, fra­grant Pathum Thani rice paddy with 15% mois­ture, gluti­nous rice paddy with 15% mois­ture and pro­vin­cial fra­grant rice paddy.

The rice price guar­an­tee of­fers com­pen­sa­tion if mar­ket prices fall be­low the bench­mark.

BANGKOK POST GRAPH­ICS

Source: Com­merce Min­istry

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