Bangkok: The Cabinet has rolled out a comprehensive support program for sugarcane farmers, focusing on interest compensation, water resource management, and machinery acquisition to tackle the PM 2.5 dust problem effectively.
According to Thai News Agency, Ms. Sasikarn Wattanachan, the Deputy Government Spokesperson, announced that the Cabinet has sanctioned an interest compensation scheme for sugarcane farmers aimed at enhancing water resource management and boosting agricultural machinery use in sugarcane fields. This initiative is part of a broader strategy to elevate sugarcane production efficiency while addressing PM 2.5 air pollution concerns from 2025 to 2027. The Bank for Agriculture and Agricultural Cooperatives (BAAC) will extend financial support to sugarcane farmers, associations, agricultural cooperatives, and other relevant entities, with an annual credit ceiling of 2 billion baht, culminating in a total of 6 billion baht.
The financial assistance serves multiple purposes: to mitigate drought through water source development and irrigation enhancements, and to reorganize sugarcane planting areas. Loans associated with these purposes have a repayment duration capped at six years. In contrast, loans meant for acquiring agricultural machinery offer a repayment period of up to eight years. The government will subsidize the interest on these loans, compensating the BAAC at a rate of 3 percent per annum on behalf of the borrowers.
The budget allocation for individual farmers and groups is specific to their needs. For water resource development, a maximum of 1 million baht per person is allotted. In adjusting plantations for machinery use, the budget is limited to 500,000 baht per person, calculated at a rate not exceeding 2,500 baht per rai. Machinery purchases are also budgeted: sugarcane harvesters at 15 million baht per person, grabbers at 2 million baht, tractors at 6 million baht, and other agricultural equipment at 10.55 million baht per person. Additionally, expenditures on trucks, trailers, and drones are capped at 5 million baht per person. For individual farmers, the interest rate will align with the MRR, with a 2 percent annual charge to borrowers. The government will further compensate BAAC for an interest rate of 3.50 percent per annum on behalf of these borrowers.