thailand government approves 55 billion baht for rice support measures
Published on: November 11, 2023.
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Thai Government Approves 55 Billion Baht Measures to Stabilize Rice Prices
Thailand, known as one of the world’s largest rice producers and exporters, is taking proactive steps to stabilize rice prices for the upcoming harvest. The government has approved measures worth 55 billion baht, including loans to farmers and agricultural cooperatives, to address the market fluctuations and ensure stability in the rice industry.
Delaying the Sale of Paddy Rice
Farmers will now have the option to delay selling their freshly harvested paddy rice for five months. To encourage this delay, the government is offering a fixed price and storage cost support. The aim is to absorb 3 million tonnes of rice, providing relief for farmers and stabilizing market conditions.
Under the scheme, farmers will receive 12,000 baht per tonne for their rice, along with an additional 1,500 baht per tonne to cover storage costs. Incentives will also be offered to farmers participating in the program.
Improving Farmers’ Incomes
The Thai government recognizes the importance of improving farmers’ incomes and is planning to modify its intervention policy on rice prices. Subsidies will be reduced, and discussions will be held with farmers to explore options such as improving production efficiency and adopting technological solutions. These efforts aim to enhance the livelihoods of farmers and strengthen the rice industry.
Challenges and Trends in Thailand’s Rice Production
Rice production in Thailand faces various challenges, including climate change, water scarcity, and market fluctuations. However, the government has implemented policies and programs to address these challenges and improve productivity and quality.
Some of the current trends in Thailand’s rice production include:
- Increasing productivity and quality: The Thai government provides subsidies for seeds, fertilizers, irrigation, and crop insurance. It promotes good agricultural practices, organic farming, research and development on new rice varieties and technologies, and enhances post-harvest management and processing.
- Diversifying rice products: To meet changing consumer preferences and demands, the Thai government and private sector are developing and promoting specialty rice, functional rice, and processed rice products. These include jasmine, hom mali, fragrant, colored, and glutinous rice, as well as rice flour, noodles, snacks, beverages, and cosmetics.
- Expanding export markets: Thailand is exploring new export markets in Africa, the Middle East, and Latin America. The country is also strengthening trade relations with existing markets and participating in regional and international trade agreements to gain more market access and reduce trade barriers.
Thailand’s Rice Export Performance
Data from the Ministry of Commerce showed that Thailand exported rice valued at US$2.56 billion in the first seven months of 2023, marking a 20.73% increase compared to the previous year. This reflects the continued growth and competitiveness of Thailand’s rice industry in the global market.
For more information on Thailand’s rice exporters, rice suppliers, and prices, visit HAS Rice and Pakistan Rice.
Source: Thailand Business News
