Bangkok, The Cabinet has resolved to approve a project to compensate rice traders for interest in stocking in the production year 66/67, with a budget of 780 million baht, with a target of 4 million tons of paddy and milled rice.

Mr. Chai Watcharong, spokesman for the Prime Minister's Office, revealed that the Cabinet meeting resolved to approve the project to compensate interest for rice traders in stocking the production year 66/67 (the project) and approved the budget framework. The amount of 780 million baht as proposed by the Ministry of Commerce by the National Rice Policy and Administration Committee (NRCT) at its meeting on 23 Nov. 2023 resolved to approve the project. Within the budget limit of 780 million baht because rice will be released to the market together at the beginning of the season. As a result, mills and central markets need to expedite the distribution of produce to the market. Therefore, the project will help entrepreneurs to have liquidity in purchasing produce from farmers. By preserving stocks and compensating for the opportunity cost of storing rice. This will result in farmers being able to sell rice at a reasonable and fair price.

This is so that farmers can sell more rice at the beginning of the season at reasonable and fair prices. And rice traders can buy paddy at the beginning of the season when the produce will be released in large quantities to the market without having to rush to release it. Including pulling excess produce out of the market. in order to make the domestic rice market price unstable Promote all types of loans for the purpose of stocking rice traders. without interfering in the market in accordance with free market mechanisms

However, the target group are rice traders participating in the project which will be stored in the form of rice and milled rice The target is 4 million tons of paddy and milled rice in 2-6 months, with the government compensating interest to rice traders who will participate in the project. Through commercial banks or government banks where rice traders are customers. According to the value of rice that participants in the project Store stock at the rate of 4 percent per year and according to the period of stock storage of 60-180 days from the date of purchase.

– Purchase of paddy rice: rice traders participating in the project The loan must be taken in the form of a promissory note (except BAAC which is a loan contract) from the bank to purchase paddy and milled rice from farmers. directly and indirectly

– Stocking: Rice and paddy purchased from farmers in the form of paddy. or the color is transformed into milled rice according to the quantity and value allocated.

– Applying for interest compensation: When the promissory note or loan contract is due, the commercial bank or state bank certifies the loan and the interest that will be compensated. By project participants Submit such evidence to request interest compensation to the Provincial Sub-Committee according to the next steps.

Using a budget of 780 million baht, divided into interest compensation.

1. Jasmine rice and sticky rice in the Northeast 440 million baht (quantity 2 million tons x 11,000 (price per 1 ton) x 4% x 6 months)

2. Rice 340 million baht (quantity 2 million tons x 8,500 (price per 1 ton) x 4% x 6 months). Interest compensation can be paid during the transaction.

The money from the general fund will be used to help farmers at the first opportunity. If it is not enough, the Department of Internal Trade will propose to request budget allocation. as necessary and appropriate With the implementation period - from the Cabinet's resolution - 31 Oct. 2025.

(1) Nationwide (except the southern region)

-Purchasing rice from farmers for stocking since the Cabinet passed a resolution - 31 March 2024.

-Period for storing rice stocks since the Cabinet's resolution - 31 Dec. 2024.

(2)Southern region

-Purchasing rice from farmers for stocking 1 Jan. - 30 Jun. 2024

-Rice stock collection period 1 Jan. - 28 Feb. '25

However, the main responsible agency is the Ministry of Commerce. and to enable the implementation of government policy in the next period to ensure budget spending. It's worth it. and in order to carry out the project Be accurate and transparent It is seen that importance should be given to controlling, supervising, supervising and operating in strict accordance with relevant rules and regulations. Especially the inspection of rice stocks of rice traders, along with the Cabinet resolution on 21 Nov. 2023 that in preparing measures Projects to support or assist farmers and the agricultural sector from now on Consider taking measures. projects in a manner that supports increasing productivity levels (Productivity) of the agricultural sector Development of the agricultural sector throughout the supply chain or upgrading the production process and create added value for agricultural products This will help farmers to generate sufficient income for themselves in the long term. and continue to live a quality and sustainable life. -517

Source: Thai News Agency