AreaThailand

Commodity GroupRice

CommodityAll

Date23/08/2021

Policy CategoryProduction

Policy InstrumentProduction support, support prices

DescriptionApproved a budget of THB 89 (USD 2.7) billion to implement the Rice Price Guarantee Programme during the 2021/22 season, in support of an estimated 4.7 million rice producing households. The scheme would see the first compensation issued to farmers, in the event that market prices fall below guaranteed prices, on 15 October 2021. The programme would keep volume ceilings and guaranteed prices for supplies with a maximum moisture content of 15 percent unchanged at THB 15 000 (USD 451) per tonne of Hom Mali paddy, for a maximum of 14 tonnes or 40 rai cultivated (6.4 ha) per farming household; at THB 14 000 (USD 421) per tonne of provincial fragrant paddy for up to 16 tonnes or 40 rai; at THB 11 000 (USD 331) per tonne of Pathum Thani fragrant for up to 25 tonnes or 40 rai; at THB 12 000 (USD 361) per tonne of glutinous paddy for a maximum of 16 tonnes or 40 rai; and at THB 10 000 (USD 301) per tonne of white paddy for up to 30 tonnes or 40 rai cultivated per farming household. According to press reports, the plan, which would be subsequently presented for Cabinet approval, would envisage allocating another THB 63 (USD 1.9) billion to fund direct outlays for producers to cover production costs and quality improvements, to encourage them to delay sales and to finance interest subsidies for millers and traders who agree to store supplies.

NotesExchange rate as of 15 October 2021.