The cabinet approved a 31.51-billion-baht budget as proposed by the Bank for Agriculture and Agricultural Co-operatives to spend on insurance for the second crop paddy of the 2010/2011 season.

The cabinet also approved an increase in the benchmark price of rice under a proposal by the National Rice Policy Committee to have prices reflect higher production cost.

The price of Pathum Thani paddy was increased to 11,500 baht a tonne from 11,000 baht, regular paddy is 11,000 baht a tonne, up from 10,000 baht, and glutinous rice is 10,000 baht per tonne, up from 9,500 baht.

Deputy government spokesman Marut Masyawanich said the cabinet expected to compensate farmers participating in the programme with 30-31 billion baht, up from a previous projection of 19 billion baht, while paddy production is still projected at 10 million tonnes.

The cabinet also approved a proposal by the Agriculture Ministry to increase the price of un-pasteurised milk to 18 baht a kilogramme from 17 baht, to be effective when the Commerce Ministry allows milk manufacturers to increase prices.

The increasing price of raw milk caused pasteurised milk prices to soar to 6.37 baht a bag, up from 6.16 baht, and UHT milk to rise to 7.61 baht per carton, up from 7.40 baht. UHT per bag increased to 7.51 baht, up from 7.45 baht.

The government increased the price of raw milk because rising feed meal costs added 14.11-15.18 baht per kilo of raw milk.

In another development, the cabinet also allowed a salary increase of 5% for employees of state-owned enterprises on the condition their salary is not higher than 50,000 baht per month, effective April 1.

Source: Bangkok Post