Prime Minister Abhisit Vejjajiva on Tuesday approved the Bt55 million transfers to over 3,000 corn growers, as the first batch of compensation under the price guarantee scheme.
Over 380,000 corn growers are registered under the scheme, which guarantees corn price at Bt7.10 per kg.
At the Bank of Agriculture and Agricultural Cooperatives' headoffice, Abhisit said the guarantee scheme would be more complete next year with more complimentary measures to stabilise agricultural products prices.
Deputy Prime Minister Korbsak Sabhavasu said that the government's compensation may not reach the target due to the increasing prices of agricultural products, particularly corn which could be used in ethanol production. Meanwhile, the prices of rice and tapioca should also escalate.
"Though compensation could be high initially, the money is going directly to farmers, unlike the pledging scheme," he said.
The BAAC expects to ink contracts with all 380,000 corn growers by the end of this month. Meanwhile, over 3 million rice growers had been registered and all should ink contracts with the BAAC within this year.
Source: The Nation
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