Bangkok: The Minister of Commerce has revealed that the NEB Subcommittee on Marketing has approved three strategic measures to address the issue of low paddy prices, aiming to provide financial relief to farmers. These measures include offering loans to delay the release of second-crop rice, compensating cooperatives or rice mills for interest costs, and establishing a paddy purchasing point with an increased price. The proposals are set to be submitted to the NEB meeting for approval.
According to Thai News Agency, Mr. Pichai Naripthaphan, Minister of Commerce, presided over the National Rice Policy and Administration Subcommittee on Marketing meeting to urgently tackle the problem of decreasing paddy prices. The meeting resulted in the formulation of three key measures. The first measure involves providing loans to farmers to postpone the sale of their second-season rice for 1-5 months at a rate of 1,500 baht per ton. Farmers with their own storage facilities will receive the full amount, while those storing at participating cooperatives or rice mills will receive 1,000 baht per ton, and the cooperatives or mills will receive 500 baht per ton.
The second measure offers a 6% interest compensation to cooperatives or rice mills for 2-6 months, aiming to reduce the market supply. The third measure proposes the establishment of a paddy purchasing point for immediate post-harvest sales, offering an additional 300 baht per ton. The total cost of these initiatives is estimated at 1,893.53 million baht, and they are expected to remove 500,000 tons of rice from the market. The NLA Marketing Subcommittee plans to present these proposals for further consideration.
Additionally, the Ministry of Commerce is pursuing measures to boost domestic consumption and promote exports through negotiations with China and South Africa to purchase Thai rice. Mr. Napintorn Srisanpang, Deputy Minister of Commerce, highlighted that other farmer demands, such as management fees for rice stubble and financial aid for lowlands used as water catchment areas, are being reviewed by the NEB Subcommittee on Production. A meeting is expected next week to present these issues to the NEB and the Cabinet.
Mr. Pramote Charoensilp, President of the Thai Farmers Association, expressed that the proposed measures could raise rice prices from 6,000 baht to 8,000 baht per ton, a level at which farmers can sustain themselves. However, he urged the government to address rising production costs, including fertilizers and pesticides, which currently range from 5,500 to 6,000 baht per ton, excluding costs related to rice stubble management due to the burning ban policy. He awaits further proposals from the NBP Subcommittee on Production for additional farmer support.