BANGKOK, 30 April 2011 (NNT)-The Finance Ministry is planning to propose to the Cabinet to consider insuring crops and offering fertilizer at cheaper prices, hoping this would enable farmers to grow rice when the season approaches.
According to Finance Minister Korn Chatikavanij, the Ministry will propose to the Cabinet a low interest rate for a loan of 20-30 billion THB to buy fertilizer and sell it to farmers at cheaper prices. Mr. Korn claimed that with the growing season just around the corner, farmers would be able to grow and produce rice with minimal financial burden.
The new calculation for income guarantee scheme for farmers will also be considered for farmers who are coping with rising production costs. The program could begin the same time the farmers start growing their crops.
Mr. Korn further stated that farmers would receive 130 THB, VAT included, for every 1 rai of rice paddy they own. Meanwhile, an amount of 2,000 THB per rai will be given for the damage occurred as a result of natural disasters, an increase from the previous amount of only 606 THB.
He then urged the Bank for Agriculture and Agricultural Cooperatives (BAAC) to encourage higher participation from farmers as it was considered to be a collaboration between the government, farmers and the BAAC. In order to reach a guarantee price of 130 THB, it is required that 60% of all 57 million rais of rice field be part of the program.
