Thailand: Govt offers new off-season scheme for rice farmers as prices plummet

Commerce Minister Pichai Naripthaphan met with rice farmers in Ayutthaya province on Monday to discuss government intervention in response to their pleas to halt plummeting rice prices.

Pichai told the farmers that the government was prioritising the issue, with the prime minister directing his ministry to take immediate action. 

In a notable policy shift, the government will extend support to off-season rice cultivation, giving farmers an additional 1,500 baht per tonne and another 1,000 baht per tonne if they store their harvest. Wittayakorn Maneenet, director-general of the Department of Internal Trade, explained the support package, saying: 

“Rice with 15% moisture content will be guaranteed at 8,500 baht per tonne, plus a 1,000 baht storage supplement, bringing the total to 9,500 baht per tonne.”

The ministry plans to establish additional purchasing centres offering 300 baht above the market rate to ease financial pressure on farmers. Compensation measures will also be introduced to encourage greater rice purchases, potentially raising the price of dry rice to the 9,500 baht per tonne target sought by farmers.

For farmers who have already harvested their crops, the ministry is developing a verification system to facilitate compensation through the Finance Ministry, ensuring a transparent process for public fund allocation. 

The National Rice Policy and Management Committee (NRPMC), chaired by Finance Minister Pichai Chunhavajira, is set to review these assistance measures at its meeting on Wednesday. The committee’s marketing arm will present proposals to support off-season rice prices for 2025. 

This article has been republished from The Nation.