Farmers could soon have their own welfare fund if plans now before the Rice Department are approved. The fund would mainly cover farmers' medical and healthcare costs and provide savings for their old age.

Officials said the fund was aimed at promoting farming and providing rice farmers with job security.

Deputy director-general of the Rice Department Chairit Damrongkiat said the department would submit guidelines on the fund's operation this week for the approval of the Agriculture Ministry.

Mr Chairit said the fund might call for contributions from farmers, millers and exporters, and the government.
Commerce Minister Porntiva Nakasai said her ministry backed the proposal.

There are 3.7 million farming families in Thailand with rice crops covering about 58 million rai. Each year, the country produces from 28 million to 30 million tonnes of paddy worth between 180 billion and 200 billion baht. Rice is one of Thailand's top exports, bringing in 80 billion to 100 billion baht a year.

Chookiat Ophaswongse, the honorary president of the Thai Rice Exporters Association, also said that the fund was a good idea.

He also proposed that the government set up a rice development fund to boost production and efficiency, reduce input costs, develop new strains and provide farmers with welfare.

The rice development fund has been proposed to Prime Minister Abhisit Vejjajiva, he said.

Mr Chookiat also said the government should recall the latest bids for glutinous rice as the prices offered were well below market rates.

However, the new bids for white rice should go ahead, as the average of 16,000 baht a tonne being offered by exporters was lower than the market price of about 17,000 baht a tonne.

The market price for white rice is being quoted at 16,900 to 17,000 baht a tonne, with the price for glutinous rice as high as 22,000 to 22,100 baht a tonne.

A source from the Commerce Ministry said the prices offered by exporters were still relatively low.

Source: Bangkok Post