The Agriculture and Cooperatives Ministry's proposal to use 3 billion baht from the central budget to repay farmers's debts is due to go before the cabinet for approval.
Vachiraphan Chankajorn, secretary-general at the Office of Farmer's Reconstruction and Development Fund, said a recent meeting of the committee to rehabilitate farmers' debts chaired by the ministry's permanent secretary Theerapat Prayoonsith had agreed to repay 3 billion baht worth of debt owed by 19,494 farmers.
Gen Prayut: Agencies asked to help farmers
The ministry has already checked the latest status of those farmers and their collateral placed with financial institutions.
The highest proportion of debt -- 2.18 billion from 16,144 farmers -- is owed to the Bank for Agriculture and Agricultural Co-operatives (BAAC).
Some 166 million baht covering 178 farmers is owed to the Bangkok Commercial Asset Management Plc. Bangkok Bank Plc is owed 20.3 million baht from 28 farmers and Krungthai Bank Plc is owed 63.3 million baht from 88 farmers.
The proposal will go before the cabinet soon for approval, said Mr Vachiraphan.
Prime Minister Prayut Chan-o-cha instructed state agencies in July last year to closely monitor farmers' informal debts for fear that their obligations would surge in light of the drought and weak economy.
Gen Prayut also told them to work out immediate measures such as low-interest loans, particularly for farmers whose lands are set to be confiscated by loan sharks.
The Agriculture and Cooperatives Ministry reported that 149,000 farmers owed 21 billion baht to loan sharks, while another 140,000 owed 360 billion to financial institutions. Their predicament is expected to worsen during the current period of poor economic growth, low agricultural prices and the ongoing drought.
Gen Prayut also called on several ministries, including the Justice Ministry, the Agriculture and Cooperatives Ministry and the Finance Ministry to provide urgent assistance to some 90,000 farmers facing legal action for taking 13 billion baht in off-system loans.
The Justice Ministry was instructed to ensure the farmers' land does not fall into the hands of the loan sharks, while other agencies should see if they can assume the farmers' debts.