BAAC general manager Luck Wajananawat said yesterday that the bank had allocated a Bt46.78-billion budget to provide soft loans to rice farmers – Bt27.41 billion for farmers with white-rice paddy and Bt19.37 billion for those with Hom Mali fragrant-rice paddy.
Farmers who join the government project will receive Bt9,500 in interest-free soft loans for them to delay sale of their paddy for a maximum of five months. They will get Bt1,500 for storing rice in their barns, plus Bt2,000 for harvesting and quality-improvement costs.
The money will be transferred directly to the participating rice farmers’ bank accounts.
Luck said the bank aimed to encourage farmers to strengthen their competitiveness by grouping together, which would help them increase their bargaining power. He added that the farmers should also focus on value-added products. Also, farmers should not rush to sell rice after harvesting.
Other BAAC measures to help rice farmers in the short and long term include a two-year suspension of loan repayments not exceeding Bt500,000, starting from July this year to June 2018. This measure is expected to help 2 million farmers. The bank has helped farmers reduce production cost by Bt1,000 per rai with a maximum of 10 rai per farmer from July to December. About 3.7 million farmers are being supported under this measure.
Farmers yesterday voiced their support for the government project to provide soft loans in a bid to prevent rice oversupply in the market.

‘Free from irregularities’

Boonma Sitthiprapa, a farmer in Phichit, said that though the government’s financial aid was not much, it would benefit farmers as the money would be paid directly to them.
“Unlike in the past, this project will be free from irregularities,” he added.
Meanwhile, the board members and president of the Thai Rice Mills Association yesterday announced their resignation from the executive committee, saying they had failed to help in arresting the rice price decline.
Manut Kijprasert, president of the association, said rice millers have become a “defendant in society” after rice prices decreased. He said the prices reflected the market situation and the rice millers could not do much to help drive up the prices.
Meanwhile, farmers in different provinces have started milling and selling rice on their own. Many of them have bought small milling machines for home use.
Farmers in Phayao and Maha Sarakham provinces sold their rice at provincial halls with certain local businesses providing them space to set up stalls as part of measures to help farmers deal with the price crisis.
Some local business owners said they had provided booth space to farmers free of charge. In Buri Ram, the sale of small and medium-sized rice milling machines has increased by more than 20 per cent due to higher demand from local farmers.
The milling machines cost between Bt10,000 and Bt45,000. Some models are currently out of stock due to the unexpected surge in demand.
Some rice millers in Ubon Ratchathani, Si Sa Ket and Buri Ram provinces yesterday offered milling services to local farmers free of charge, to help them lower their cost.