The deputy premier in charge of economic affairs has confirmed the implementation of the state's farm price guarantee program starting with rice, corn and tapioca.

Speaking at an economic seminar, Deputy Prime Minister on economic affairs Korbsak Sabhavasu said the government will not offer the pledging program on agricultural products anymore because it had to spend as much as 140 billion baht for the procurement of farm outputs including rice, corn and tapioca, and 12 billion baht for administration fees each year.

In addition, the government had suffered losses of over ten billion baht from selling farm products in stockpiles. He added that the government will replace the pledging program with the farm price guarantee instead.

Initially, the farm price guarantee will be implemented with corn and tapioca, while the paddy price guarantee will depend on a decision made by the National Rice Policy Committee.

Korbsak went on to say that the scheme will guarantee a minimum income for farmers and stabilize farm prices.

Furthermore, the state will purchase farm products for exports if the guarantee price is slightly lower than the market price, in order to help farmers.

In the meantime, Thai Farmers Association President, Prasit Boonchoei, supported the farm price guarantee but he is concerned whether the scheme will be implemented on time since there is no development on the process so far.

Therefore, he suggested the government delay the price guarantee and continue with the pledging program for this batch of in-season rice.

Acting President of the Bank of Agriculture and Agricultural Cooperatives Ennoo Suesuwan said the government will see less deficit when using the price guarantee and the bank has already informed details of the program to corn and tapioca farmers.

He stated that the bank is ready to make clear the issue with rice farmers in one and a half months in case the National Rice Policy Committee endorses the rice price guarantee.

Source: TANN