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Rice farmers to get help with harvest costs

28 November 2024

Government preparing to scrap fertiliser subsidy scheme that farmers had called impractical

The government is preparing to scrap a much-criticised fertiliser co-payment scheme and replace it with a new programme aimed at reducing rice farmers’ harvest costs, according to Agriculture Minister Narumon Pinyosinwat.

A report by a sub-committee that reviewed the plan is expected to be presented to the National Rice Policy Committee next week so that it can be submitted to the cabinet for approval, Ms Narumon said on Wednesday.

Farmers had complained earlier about the limitations of the fertiliser scheme and called for other types of subsidies for the 2024-25 planting season. More than 70% of farmers have now begun harvesting their crops and said they would prefer help with their harvest costs.

Under the fertiliser scheme, the government was to subsidise fertiliser costs for farmers at a rate of 500 baht per rai, up to a maximum of 20 rai per person, for the 2024-25 season. However, farmers were required to pay half the costs upfront, which they said was not practical.

The programme, estimated to cost 29.9 billion baht, was scheduled to run from July 15, 2024 to May 31, 2025. Ms Narumon said the cabinet would be asked to revoke its decision approving the scheme.

The ministry is now preparing to propose to the cabinet a scheme to stabilise prices of paddy rice in the 2024-25 season, said the minister.

The rice policy committee on Nov 8 approved a proposal to stabilise the price for 8.5 million tonnes of paddy rice with a budget of 60 billion baht, she said.

The scheme has three components: loans to farmers who agree to delay the sale of paddy rice; loans for rice farmers’ organisations to add value to the product; and a support programme for private rice warehouse operators participating in the scheme.

Natthakit Khongthip, director-general of the ministry’s Rice Department, said the harvest cost assistance scheme would be widely welcomed by farmers, although many are demanding financial aid of 1,000 baht per rai.

He said the rice policy committee has yet to review the proposed scheme and it may consider increasing the amount of financial aid.

Source : bangkokpost

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