thailand farmersAccording to the information available, it has been indicated that the Thai government is planning to encourage farmers to store their rice during the harvest period in order to protect rice prices from its falling. The Permanent Secretary for Commerce informed to the reporters that the Bank for Agriculture and Agricultural Cooperatives (BACC) will seek cabinet approval to provide loans to the farmers in the northern and north-eastern provinces to encourage them to store rice.

Indian Queen Basmati Rice Ad.
Indian Queen Basmati Rice

Further, it has been indicated that the BACC will lend 2.9 billion baht (around $2.54 million) to farmers at low interest rate as well as about 12.5 billion baht (around $11 million) to cooperatives to process rice. In this matter, during last week, the Commerce Ministry revealed that it is planning to introduce a new pledging scheme for Hom Mali rice as part of measures to control prices during the harvest season. According to the data of Commerce Ministry it has been reported that Thailand exported about 6.61 million tons of rice in the first nine months of 2015, which is down about 13% y/y. It has also been added that the government has decided to sell 2 million tons of rotten rice from stockpiles and is planning to sell another 9 million tons sometime later.