The Thai government has approved new economic relief measures for rice farmers aimed at addressing the financial challenges they face. The National Rice Policy Committee (NRPC) has decided to allocate direct financial aid of 1,000 Baht per rai (approximately $30) for each rice farmer, with payments capped at 10 rai per individual. This decision came during the NRPC's first meeting of 2023 on February 26, and it aims to alleviate difficulties brought on by various economic pressures.
According to Minister of Commerce Pichai Naripthpan, this initiative will provide support total amounting to 2.867 billion Baht (around $87 million). The aid is offered particularly to registered farmers who cultivate rice during the off-season—known as napanang rice. It acknowledges the challenges these farmers face due to fluctuated market prices and climate-related issues.
"The NRPC has approved direct compensation to farmers at 1,000 Baht per rai, with up to 10 rai per person. We aim to align production with market demand," said Naripthpan, emphasizing the importance of adapting agricultural practices to meet current market needs.
The aid program carries stipulations: farmers are required to develop plans to alter some areas currently designated for rice cultivation to grow alternative crops with higher market value or to adjust rice varieties to those more desirable to consumers.
To plan this transition effectively, the Thai Ministry of Agriculture and Cooperatives, along with the Ministry of Commerce and the Ministry of Interior, will work together to establish appropriate conditions. This includes strategies for optimizing rice production and ensuring compliance with market demands.
Aside from financial assistance, the government also plans to launch measures to stimulate domestic rice consumption. This initiative targets 500,000 tons of rice, which will be conducted through collaborations with local retailers and the manufacturers of pre-packaged rice products.
Highlighting the holistic approach taken by the government, Naripthpan mentioned, "We are working with local retailers to distribute rice products to stimulate domestic consumption." This effort intends to prepare for increased rice consumption within the Thai populace, aiming to reduce excess supply affecting market prices.
To support the export of rice, the Ministry of Commerce will also encourage the use of EXIM Bank to provide loans for exporters. This financial backing is intended to invigorate the procurement and stocking of rice from farmers. Currently, there exists signed contracts for the sale of 280,000 tons of rice to China, and there are plans to tap new markets, including South Africa.
These combined measures are seen as pivotal to maintaining rice price stability both domestically and internationally. By driving demand and facilitating growth opportunities for farmers, the Thai government aspires to boost the agricultural sector's resilience.
Overall, the latest measures are expected to provide relief and support to Thai rice farmers, equipping them with the necessary tools to navigate the challenges of modern agriculture. Moving forward, the government hopes these actions will encourage higher quality production, greater efficiency, and sustainability within the rice farming sector.