Economic Cabinet pushes rice price guarantee schemes into action

BANGKOK, 20 October 2009 (NNT) – Mr. Korbsak Sabhavasu, Deputy Prime Minister for economic affairs reveals that The National Rice Policy Commission (NRPC) will be proposing the 6 rice price guarantee schemes in today’s Cabinet meeting.

The NRPC suggested imposition of the 6 rice price guarantee schemes to prevent an over compensation that the government needs to pay the farmers after the rice price has dropped significantly.

The market interference, as a part of the 6 schemes, allows the registered millers to buy paddy rice directly from the farmers at reference prices and store it for 6 months at some cost which is expected to bring 860 million baht circulation into the system.

The scheme also aims to enhance the financial liquidity for the operators by compensating 2% p.a. interest pay for buying rice from the farmers in advance, as well as to reinforce export activity at the beginning of the production season.

NRPC claimed that the schemes would help stabilize the rice price for the farmers.