The Bank for Agriculture and Agricultural Cooperatives will begin taking farmers' applications for crop price guarantee program by the end of the month while pledging cooperation for the government's policy to tackle problems of nonbanking debts faced by farmers.

Vice president of the Bank for Agriculture and Agricultural Cooperatives, or BAAC, Ennu Suesuwan, said that his bank and the Department of Agricultural Extension have geared up for the price guarantee for tapioca, corn and in-season paddy. The price guarantee program has been launched by the government to replace the pledging scheme.

Registration will be open to tapioca and corn farmers in September and to rice growers in October.

Ennu added that officials will need more time to check qualifications of rice farmers due to their huge number. However, he insisted that the inspection and contracting procedures will be completed in time for the next cultivation.

The BAAC executive went on to say that local administrative officials will be asked to monitor possible fraudulent activities. Meanwhile, the BAAC will also examine farming areas with the use of aerial maps for any irregularities.

Ennu said in the upcoming harvest season, his bank expects 29.7 million tons of tapioca, 4.25 million tons of maize and 23.5 million tons of in-season rice to hit the market.

He added that the BAAC has set a maximum price-guarantee quota for tapioca at 100 tons per household, maize at 20 tons and rice at 25 tons. He said the program will ensure that farmers can sell their produce at a high price, encouraging them to increase cultivation.

Meanwhile, in response to the Finance Ministry's initiative to tackle problems of nonbanking debts of farmers, Ennu said the BAAC is ready to address the issue. However, he said the bank will need cooperation from local officials in settling farmers' debts with loan sharks.

Source: TANN