In order to satbilises crop prices,the thai government has speed up sealing of G-to-G deals with Africa, the Middle East and China and decided to a take a positive approach on the management of farm product.
For this the government has decided to retain the prices of paddy at less than 8,500 baht a tonne for white rice, 15,000 to 16,000 baht for Hom Mali rice and a minimum of 13,000 baht for glutinous rice, said commerce permanent secretary Chutima Bunyapraphasara.
The National Rice Policy Committee’s measure in this regard includes asking the rice millers to cooperate in buying farmers’ output for 100-200 baht a tonne above market prices.
This move by the Committie includes stabilizing the market supply, the government subsidizing 3% of the interest rate on loans taken out by the millers to buy the crops.
Also the farmers who will agree upon storing theirnew harvest stored and will pause their rice sales will get loan without any interest from Bank for Agriculture and Agricultural Cooperatives (BAAC) for four months.
Chutima Bunyapraphasara said that in their next meeting they will request the BAAC to extend farmers’ loans for 90% of the crop’s value, up from 80% now.
The raising price of farm product especially that of rice is creating pressure on the government when it is trying to regularize the previous rice stock handed over by the previous government.
The Agriculture Ministry forecasts Thailand’s rice supply for the 2015-16 season at 37 million tonnes of paddy. Of that, 27 million tonnes will come from the main crop and 10 million tonnes from the second crop.
Commerce Ministry will exercise its normal practice of selling rice from its rice stockpiles from its stock through auctions. And next week it will 207,898 tonnes of rice
The tender for sale will open at the Foreign Trade Department next Tuesday after the announcement of eligible bidders earlier in the day. The Commerce Ministry sold 140,000 tonnes in the first two auctions and earned 1.6 billion baht.