BANGKOK, Thailand – The Bank for Agriculture and Agricultural Cooperatives (BAAC) has launched two financial assistance programs worth 50 billion baht to support farmers affected by falling rice prices. The decline is linked to increased global rice exports, which have reduced demand for Thai white rice. The initiative seeks to stabilize prices for the 2024/25 production season by offering financial relief and storage support.
A 35-billion-baht loan program has been introduced to help farmers delay paddy sales, preventing oversupply and improving liquidity. The scheme covers 3 million tons of paddy, with individual farmers eligible for loans of up to 300,000 baht. Agricultural cooperatives, farmer groups, and community enterprises can also apply under specified limits. Interest payments will be fully covered by the government, and additional subsidies will be provided for paddy storage. Loan amounts per metric tonne vary by rice type, with Jasmine rice farmers receiving 12,500 baht per tonne, while white rice paddy qualifies for 9,000 baht per tonne.
A separate 15-billion-baht loan program supports agricultural institutions in purchasing paddy from farmers and processing it into higher-value products. The scheme is expected to cover 1.5 million tons of paddy, strengthening price stability. Agricultural cooperatives can borrow up to 300 million baht, while farmer groups and community enterprises have lower borrowing limits. Participating institutions will pay just 1% annual interest, with the government and BAAC covering the remainder.
As of today, 253,344 farmers have taken part in the sales postponement program, with 23 billion baht already disbursed. Meanwhile, 3 billion baht has been issued under the processing and collection program. The loan contract signing period remains open until February 28, 2025, for general regions and July 31, 2025, for the southern region. Applications for the processing program will be accepted until September 30, 2025. (NNT)
