Detail

Thailand

Rice

All

03/11/2020

Production

Production support, support prices

Approved a budget of THB 51.6 billion (USD 1.6 billion) to assist rice producers during the 2020/21 season. A portion of these funds would be destined to implement the Rice Price Guarantee Programme between October 2020 and May 2021, keeping volume ceilings and guaranteed prices unchanged at THB 10 000–15 000 (USD 319–478) per tonne, as announced in June 2020. Direct outlays to help producers with production costs and quality improvements would also be renewed, at THB 500 per rai (USD 99.5 per ha) for up to 20 rai (3.2 ha) cultivated, and three separate schemes that seek to stabilize paddy prices, covering a total 7.0 million tonnes of paddy, would be implemented. The latter would involve an on-farm mortgaging scheme to encourage farmers to delay sales of up to 1.5 million tonnes of paddy, credit assistance for farmer organizations purchasing a similar volume of paddy, and a 3 percent interest subsidy for millers and traders who agree to store up to 4.0 million tonnes of paddy for 2–6 months. Subsequent decisions raised funds to implement the Rice Price Guarantee Programme from an initial THB 18.1 billion (USD 576 million) to THB 50.6 billion (USD 1.6 billion), to account for greater farmer participation in the scheme. They also raised allocations for the on-farm pledging programme from THB 19.8 (USD 631 million) to THB 24.3 billion (USD 774 million), extending its targeted volume to 1.82 million tonnes of paddy, while boosting allocations for the direct outlays seeking to compensate for production costs and quality improvements to THB 56 billion (USD 1.8 billion).

Exchange rate as of 15 May 2021.