Prayut promises long-term cures for farmers

Prayut promises long-term cures for farmers

The government is ready to take long-term measures to help rice and rubber farmers after doling out cash to help them cope with current price slumps, according to Prime Minister Prayut Chan-o-cha.

Projects for rice growers will include rice and fertiliser banks, crop zoning, organic farming and a better water irrigation system, Gen Prayut said in his weekly television address on Friday.

"I have instructed agriculture-related units to implement a long-term plan to ensure sustainability in the rice industry," he said.

"Although these processes may take time, I believe that they will definitely build a strong foundation for the Thai agriculture."

The speech was recorded on Wednesday on the eve of his two-day visit to Cambodia.

Farmers in Lop Buri show off the money doled out by the government on Oct 20. Prime Minister Prayut Chan-o-cha says the government is working on long-term measures to help rice and rubber growers. (Photo by Thiti Wannamontha)

The government on Oct 20 began giving out cash to farmers at 1,000 baht per rai through the Bank of Agriculture and Agricultural Cooperatives. So far 67,700 rice farmers have received 837 million baht.

The government is adamant that the cash handout is not a "populist" policy, since it plans to follow up with longer-term measures. In any case, the soldiers in charge point out that they're not campaigning for votes.

However, some Pheu Thai Party members say giving away money is populist no matter who's doing it, and no less populist than the policies of former prime minister Yingluck Shinawatra.

The country is currently sitting on 18 million tonnes of rice accumulated silos across the country under the rice-pledging programme launched by the Pheu Thai-led administration. The huge stockpile has put pressure on world rice prices and is ultimately expected to cost taxpayers between 580 billion and 700 billion baht.

Results of a national audit released this week showed that up to 70% of the rice had deteriorated in quality. As a result, selling the grain will become harder and a lot may end up being sold for industrial use at even lower prices.
 
Gen Prayut said the government was also considering setting up an institute to add value to rubber. As well, it would seek cooperation from producers in other Southeast Asian countries to shore up the price.

Like rice growers, rubber planters will receive up to 15,000 baht per household to alleviate their plight as the tepid global economy decreases demand for rubber and puts pressure on prices.

The government will set up a fund worth 6 billion baht to offer cheap loans for part-time and full-time rubber farmers as they are struggling with the slump.

"All of these measures must assure that the rubber industry will grow in a sustainable way and on condition that agriculturalists have better access to financial resources and new markets," the prime minister said.

Thaksin Shinawatra tried to set up an organisation of rubber exporting countries when he was prime minister.

The idea was to bring Malaysia, Indonesia and Thailand under one umbrella similar to the Organisation of Petroleum Exporting Countries to give them power to dictate the price. The idea never took hold due to lacklustre reactions from other countries.

However, representatives of the three countries still have a tripartite commission that attempts to regulate the amount of rubber being offered on world markets in order to reduce price volatility.

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