Thailand announces the rice price guarantee scheme for the 2020/21 season


On 3 November 2020, the Government announced the allocation of THB 51.2 billion (about USD 1.7 billion) to the price guarantee scheme for the 2020/21 rice cropping season, which will run from October 2020 to May 2021. The current scheme, which is the second round of the price support programme (FPMA Food Policies) provides compensation to farmers if market prices drop below the guaranteed benchmark, to be paid by the State-owned Bank for Agriculture and Agricultural Cooperatives (BAAC). The guaranteed prices for the 2020/21 season were set at the same rates as during the previous season, thus ranging from THB 10 000 (USD 330) per tonne to THB 15 000 (USD 495) per tonne depending on the type of rice, including white non-glutinous, glutinous, jasmine and other fragrant varieties, with a moisture content of 15 percent. Similarly, the Government maintained the limit of the volume that would be covered under the price guarantee, varying from 14 tonnes to 30 tonnes per household, depending on the type of rice. In addition, the Government approved a zero interest loan scheme that targets farmers who decide to retain their grains and delay their marketing, which will be implemented between November 2020 and February 2021. The measure is aimed at supporting production and ensuring remunerative prices to farmers.

Country: Thailand