The move came after Thailand’s agricultural sector faced problems resulting from the global crop-price slump, natural disasters, and rising production costs.

The fund is also aimed at financing development of community infrastructure and alleviating the shortage of necessary production factors.

Each of the country’s 79,000 villages will be allocated Bt500,000. The budget will be disbursed within six months. The money is to be used to finance construction of barns, drying houses, community mills, community fertiliser plants, water reservoirs and agricultural machinery, and other activities that could improve the local economy.

Thailand will contribute Bt52.8 billion, of which the initial amount is Bt10.5 billion. Of this amount, payment will be made in five instalments, each of which is around Bt2.1 billion. The first instalment will be paid on the signing date of an agreement to set up the AIIB.

The Cabinet also approved a budget of Bt271 million for the Command Centre for Resolving Civil Aviation Issues to improve qualifications of personnel responsible for aviation safety.

The Cabinet rejected a one-year plan to hire a private company to operate the joint section stretching for 1 kilometre from the end of the MRT Purple Line at Tao Poon Station to the Blue Line’s Bang Sue Station,Transport Minister Arkhom Termpittayapaisith said after the meeting.

He said the Cabinet had instructed the three participating agencies, the Transport Ministry, the Mass Rapid Transit Authority of Thailand, and the committee founded under Article 13 of the PPPAct 1992 to review its proposed plan on how to manage the joint 1km section.

According the result of the negotiations between the authorities and Bangkok Metro, now known as Bangkok Expressway and Metro, which operates the Purple Line and the current Blue Line, the operator will take about 15 months to install the signalling system for the joint section.

A Cabinet resolution in October 2014 said that this operation on Purple Line of Tao Poon-Bang Sue should have same period of the Blue Line until 2029.Arkhom said construction of the Blue Line Bang Sue-Tha Phra and Hua Lamphong-Bang Khae extensions would be complete by the end of 2018 and start operation by early in 2019.

If the one-year operation for the joint section had been approved, it would have required about 15 months to install the signalling system, he added.

Board of Trade chairman Isara Vongkusolkit, who is also chairman of the Public-Private Steering Committee on State of the People – the private-sector side of Pracha Rath – said yesterday that the panel, which had now established 12 working groups, would help ensure the Kingdom’s sustainable development and growth, as it covered all areas of development from education, farming and industry to trade, investment, spending and laws. He expects the policy to be continued by elected governments, as private businesses’ involvement would provide continuity and a working base for the country’s benefit.

To ensure the plan runs smoothly, some laws would need to be amended and a number of bodies established to drive the work of the 12 groups over the long term, he added.

Although the current military-installed administration only has about 18 months left in office, the 12 groups could be continued during subsequent governments, he stressed.

The State of the People panel comprises seven driver groups and five supporting groups.

The former cover work on innovation and productivity, promotion of small and medium-sized enterprises and start-up businesses, tourism and MICE (meetings, incentives, conventions and exhibitions) promotion, exports and outward investment, industrial clusters, modern farming, and income creation and spending stimulation.

The five supporting committees cover investment attraction and infrastructure development, professional development, rural economic promotion and State of the People development, law amendment and the government’s work mechanism, and education and leadership development.

The over-arching target of the working plan is to narrow the income gap, develop human resources and increase competitiveness.

Isara said that now that all 12 groups had commenced work in their respective areas, information would be put together every three months and form the basis of proposals for action plans.

Under the working plan, if a particular strategy can be implemented quickly, it will progress immediately so that the outcome can be seen in the short term, while the committees will also draw up medium- and long-term strategies for promoting sustainable growth.

The public sector will be the centre for the overall project, he said, adding that unlike previous populist approaches, the potential benefits for the country would be weighted on a priority basis with a view to the successful adoption of each action plan.

Asked about the working process for the modern farming sector, for which Isara chairs the committee for the private-sector side, he said modern farming should emphasise the demand side, with farmers focused on producing quality crops that serve exactly what the market wants.

For instance, rice farmers would be encouraged to grow other economic crops such as sugar cane or vegetables, which would provide better income and give them a much greater degree of certainty in terms of buyers.

The working committee will also encourage each community to adopt modern technology with a view to reducing production and labour costs, develop packaging, and offer quality products to serve demand in each market segment.

It will also promote the allocation of local budgets for each village to spend on modern farming projects and the setting-up of community cooperatives for small farmers to get together to reduce production and logistics costs.

Isara added that with some of the action plan being implemented immediately, the outcome of the modern farming committee’s work should be seen within one year.