BAAC has paid out B35bn to farmers

BAAC has paid out B35bn to farmers

All outstanding rice payments by June 22

The Bank for Agriculture and Agricultural Cooperatives has paid around 35 billion baht to almost 350,000 farmers over the past week and it expects to pay off all overdue payments for pledged grain by June 22, BAAC president Luck Wajananawat said.

 A statement issued by the bank on Monday said since receiving the first tranche of money from the government after the May 22 coup, the bank has paid out a total of 35.03 billion baht to 348,384 farmers. Order of payments is based on the running numbers of receipts farmers hold after pledging their grain from the main crop 2013/14 under the previous government led by Yingluck Shinawatra.

The bank had initially received 40 billion baht and expected another 50 billion baht to be allocated soon by the military junta for overdue rice payments. 

Mr Luck said in the statement a total of 1.69 million farmers pledged 11.81 million tonnes of main crop rice from the 2013/14 harvest for a total of 195.45 billion baht. The BAAC, as of Sunday, had paid a total of 139.35 billion baht to 1.1 million farmers who deposited 8.51 million tonnes of unmilled rice with the government.

To finance the payments, the bank received 145.5 billion baht from the government, of which 115 billion was from the budget and rice sales by Commerce Ministry, 10.5 billion from the BAAC’s initiative farmer assistance fund, and 20 billion baht from the government’s central budget.

The Public Debt Management Office would on Tuesday start the process of borrowing another 50 billion baht from financial institutions, and then deliver the funds to the BAAC for further payments to farmers, he said.

Do you like the content of this article?
COMMENT (7)