BAAC ready to help farmers suffering from drought

ANGKOK, 8 March 2010 (NNT) – The state-run Bank for Agriculture and Agricultural Cooperatives (BAAC) is ready to help farmers from the drought crisis by issuing loans and moving forward the weather insurance scheme.

According to BAAC President, Luck Wajananawat, the bank will approve short-term loans for farmers for irrigation system development. The six-month period loan will not exceed 30,000 THB per head and will have a low interest rate. Farmers then are advised to grow crops requiring less amount of water during this dry season.

As for a long-term solution, the bank president elaborated that the BAAC and the Ministry of Finance would move forward the weather insurance program by using the rain index to help farmers. He said the bank would suggest the government help pay 100 THB per rai, a half of the insurance premium for farmers in order to attract participation of farmers into the program.

The scheme is now piloted in five provinces in the country, including Nakhon Ratchasima, Phetchabun, Saraburi, Lop Buri, and Nakhon Sawan with the participation of 750 maize farmers. The program is expected to expand to other types of crop such as rice and tapioca.