The government is set to discontinue a widely criticized co-payment scheme for fertilizers and introduce a new program aimed at helping rice farmers reduce their harvest costs, as announced by Agriculture Minister Narumon Pinyosinwat.
A report from a sub-committee assessing the new plan is expected to be presented to the National Rice Policy Committee next week, after which it will be submitted to the cabinet for approval, Ms. Narumon stated on Wednesday.
Farmers previously voiced dissatisfaction with the limitations of the fertilizer scheme and requested alternative subsidies for the 2024-25 planting season. Currently, over 70% of farmers have begun harvesting their crops and indicated a preference for assistance with harvest expenses.
Under the former fertilizer scheme, the government planned to subsidize the cost of fertilizers at 500 baht per rai, up to a maximum of 20 rai per person for the 2024-25 season. However, farmers were mandated to pay half of the costs upfront, which they deemed impractical.
The estimated budget for the fertilizer program was 29.9 billion baht, scheduled to run from July 15, 2024, to May 31, 2025. Ms. Narumon remarked that the cabinet will be asked to annul its previous approval of this scheme.
The ministry is now preparing to propose a plan to the cabinet to stabilize paddy rice prices for the 2024-25 season, according to the minister.
On November 8, the rice policy committee approved a proposal to stabilize prices for 8.5 million tonnes of paddy rice with a budget of 60 billion baht. The scheme comprises three parts: providing loans to farmers willing to postpone selling their paddy rice; loans for rice farmers’ organizations to enhance product value; and a support program for private rice warehouse operators involved in the initiative.
Natthakit Khongthip, director-general of the ministry’s Rice Department, stated that farmers are likely to welcome the harvest cost assistance program, although many are requesting financial support of 1,000 baht per rai. He noted that the rice policy committee has yet to review the proposed scheme, and it might contemplate increasing the financial aid amount.