The government may not be able to offer crop insurance for rice farmers for their first crop in August because various parties still are reluctant to join the programme.

The Bank for Agriculture and Agricultural Cooperatives (BAAC), insurance companies and farmers expressed concern over criteria and definitions of natural disasters because each region used different criteria.

Meanwhile, the Interior Ministry has not clarified the criteria, according to a source from Government House.

He said premiums were likely to be higher than 140 baht a rai, a figure based on farmers with a total of 57 million rai joining the programme. But since it is voluntary, the number of participants could be lower.

At this premium, damage compensation is set at 1,400 baht a rai.

Farmers who are clients of the BAAC would pay only 50 baht a rai in premiums, while the bank pays another 50 baht and the government 40 baht. Farmer clients of other banks would pay 100 baht a rai.

Prasit Boonchuey, the president of the Thai Farmers Association, said that his association fully supported the project because it would benefit farmers amid the increasing frequency of natural disasters.

Deputy Prime Minister Trairong Suwankhiri said the government needed to overcome the reluctance of participating parties as it wanted to implement the scheme as soon as possible.

Dr Trairong believes concern about natural disasters will encourage farmers to participate the scheme because existing compensation is only 606 baht per rai.

The government also needs to allocate a budget to improve early-warning systems for natural disasters in order to prevent damages.

Mr Prasit said the association tried to convince farmers to join the scheme, even non-clients of the BAAC who have to pay a higher premium.

Currently, about 70% of Thai farmers are BAAC clients.

"However, the compensation should be attractive and cover damages or around 4,000 baht a rai because production costs are already 5,000 baht per rai," he said.

Source: Bangkok Post