AreaThailand

Commodity GroupRice

CommodityAll

Date11/10/2016

Policy CategoryProduction

Policy InstrumentProduction support

DescriptionApproved amendments to the on-farm mortgaging programme for fragrant and glutinous paddy from northern and north-eastern provinces. According to the decision, to assist producers put off the sale of 2.0 million tonnes of paddy, ceilings on loans issued to cooperatives and other farming communities will be set at THB 5 and 20 million (USD 144 000-576 000), respectively, while producers would be allowed to redeem a portion of THB 1 500 (USD 43) per tonne storage compensation before they sell their produce into the market. In order to encourage the storage of an additional 8.0 million tonnes of paddy, traders and processors storing supplies for 60-90 days will receive an interest rate cut of 3 percentage points, whereas those holding on to paddy for 91-180 days will be provided with 4 percent interest cut.

NotesExchange rate as of 1 October 2016.