The government is preparing to provide cash handouts to farmers for their harvest of the main rice crop, with the amount capped at 12,000 baht per household.
All rice farmers will be granted 1,200 baht per rai for harvesting and rice-quality improvement costs, not to exceed 10 rai or 12,000 baht per family, said Somsak Kangteerawat, senior executive vice-president of the Bank for Agriculture and Agricultural Cooperatives (BAAC).
Of the 48.3-billion-baht subsidy provided to farmers, 47.3 billion has been allotted for harvesting and rice-quality improvements, 19.7 million is for the management fee for harvesting and rice-quality improvements and 1 billion is for compensation of the monetary cost at the +1 fixed deposit rate.
The measure received cabinet approval last Tuesday, said Mr Somsak.
This project will be implemented between Sept 1, 2017 and July 31, 2018.
The cash subsidy will generate no less than 20% in profit for farmers harvesting the main rice crop season, he said.
Based on a forecast made by the Thai Rice Mill Association, production of the main rice crop season is estimated at 8,500 to 9,000 baht per tonne, while production of Hom Mali fragrant rice is projected at 12,000 to 12,500 per tonne.
White rice is estimated at 4,500 to 5,000 baht per tonne, without accounting for labour costs, high humidity or rice impurity issues shouldered by farmers.
The cabinet last Tuesday approved a combined 87.2 billion baht worth of measures to ensure farmer income and stabilise rice prices ahead of the annual harvest for the 2017-18 season, starting in November.
The measures include 33.5 billion baht in loans extended by the state-owned BAAC to farmers who agree to delay selling their paddy, 53.7 billion in cash handouts to farmers who store their paddy in barns for a designated period and grants for those making harvesting and rice-quality improvements.
The 87.2-billion-baht programme is expected to help 3.7 million households and will span the seasonal harvest from November to Feb 28, 2018.
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