BANGKOK -- Thailand will offer interest-free loans to farmers as an incentive to delay sales of rice, its prime minister says, as the interim government seeks to support farmers hurt by falling global commodities prices.
Prime Minister Prayuth Chan-ocha says the state-run Bank for Agriculture and Agricultural Cooperatives would provide four-month loans to rice farmers to hold on to their stocks until after the harvest period, which begins in November, as a means of stabilizing prices.
Effective Nov. 1, farmers would be offered 14,400 baht ($444) for every metric ton ( 1.01 tons) of fragrant rice paddy they produce and an additional handout of 1,000 baht per metric ton to store it themselves. Loans of 11,700 baht per metric ton would be offered for holding back glutinous rice.
"We have policies that will take care of rice farmers," Prayuth says. "We are approaching the first harvest season and are taking measures to not let prices be affected."
Thailand's military-dominated government has been taking steps to appease farmers, an important support base for the administration the generals overthrew in a May 22 coup.
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A $1.8 billion state subsidy plan was approved on Oct. 21 to help rubber farmers, who have threatened protests.
Commodity prices are slumping at a critical time for the government, which is struggling to revive an economy hurt by weak spending and exports.
A Reuters poll shows exports probably fell for a third straight month.
The commerce ministry is also offering two months of interest-free loans of 2,000 baht for every rai (0.4 acre) of land used by farmers for their crops.
Deputy Commerce Minister Chatchai Sarikulya says the rice loans would be capped at 20 metric tons or 300,000 baht per household, with a total cap on the project at 2 million metric tons.
