India Queen Basmati Rice
India Queen Basmati Rice

Thailand’s Bank for Agriculture and Agricultural Cooperatives (BAAC) has planned to give a financial support of about 60 billion baht (around $1.6 billion) to farmers to shift their farming to other crop than rice.

BAAC will propose this plan in a board meeting on July 13, 2015, Bloomberg quoted Thai Finance Minister.

BAAC has planned to lend the amount in form of loan to farmers. Around 30 million baht will constitute short term loans with an interest rate of 4% per annum. Another half will constitute three year loan with an interest rate of 7% per annum.

This plan is expected to reduce the area under plantation of rice in view of ongoing drought condition in the country, lower rainfall and reducing water levels.

Thai government has already advised farmers not to grow their crops till August as it cut water supplies to more than half of the rice area  in the region due to falling water levels in the Chao Phraya River basin