The government is set to abolish a controversial fertiliser co-payment scheme and replace it with a new initiative aimed at reducing rice farmers’ harvest costs, according to Agriculture Minister Narumon Pinyosinwat.
A sub-committee’s report reviewing the plan will be presented to the National Rice Policy Committee next week for submission to the cabinet for approval, Ms. Narumon announced on Wednesday.
Farmers had previously voiced dissatisfaction with the fertiliser scheme, citing its limitations and requesting alternative subsidies for the 2024-25 planting season. With more than 70% of farmers now in the midst of harvesting, many have expressed a preference for support with their harvest expenses instead.
Under the fertiliser scheme, the government planned to subsidise fertiliser costs at 500 baht per rai, up to a maximum of 20 rai per person for the 2024-25 season. However, farmers were required to pay half of the costs upfront, a condition they found impractical.
The programme, which was estimated to cost 29.9 billion baht, was scheduled to run from July 15, 2024, to May 31, 2025. Ms. Narumon confirmed that the cabinet would be asked to revoke its approval of the scheme.
The Ministry is now preparing to propose a new plan to the cabinet aimed at stabilising the prices of paddy rice for the 2024-25 season.
On November 8, the rice policy committee approved a proposal to stabilise the price for 8.5 million tonnes of paddy rice with a budget of 60 billion baht, the minister stated.
This new scheme consists of three components: loans for farmers who agree to delay the sale of their paddy rice, loans for rice farmers’ organisations to add value to their products, and support for private rice warehouse operators participating in the programme.
Natthakit Khongthip, Director-General of the Ministry’s Rice Department, indicated that the harvest cost assistance scheme would be welcomed by farmers, although many are requesting a financial aid of 1,000 baht per rai.
He added that the rice policy committee has yet to review the proposed scheme and may consider increasing the amount of financial support.
