As per sources, it indicates that the Thai Rice Exporters Association (TREA) has agreed to finance the storage costs of around 100,000 tons of fragrant rice from the new crop as part of measures to protect prices during the harvest time. The Head of the TREA, informed that the association would buy about 100,000 tons of fragrant rice from the farmers at around 26,000 baht per ton (around $728 per ton) and it will be stored for next three months. Further, it has also been revealed that the association would provide about $3.1 billion, including 2.6 billion baht (around $73 million) for buying the rice and around 50 million baht (around $1.41 million) for storage. This measure is likely to help farmers from selling their output at low prices.
In this regard, it has been told by the Commerce Minister that by taking the rice off from the market for a few months, it would help to stabilize the prices. It was added that during the last week, the government allocated about 40 billion baht (around $1.13 billion) to provide support measures to rice farmers who were affected by drought. Now, the government is also encouraging traders to buy about 3 million tons of paddy to avoid excess supply and to stabilize the prices. The Bank for Agriculture and Agricultural Cooperatives (BAAC) will lend 26.5 billion baht (around $742 million) to farmers in northern and north-eastern provinces to encourage them to store rice. Further, it will also lend 12.5 billion baht (around $350 million) to cooperatives to store and to process rice for about 2.5 million tons.