Critics have blasted the government's 40-billion baht cash injection to low-income rice farmers, saying the measure is only a face-saving ploy.
A stimulus plan of more than a third of a trillion baht, including 15,000 baht for every rice farmer, was announced on Wednesday (graphic with details below) by Prime Minister Prayut Chan-o-cha. It is reportedly the work of economy czar and Deputy Prime Minister MR Pridiyathorn Devakula, right. (Photo by Chanat Katanyu)
Narong Phetprasert, an economist at Chulalongkorn University, said the government's cash handout to rice farmers and its economic stimulus package will only lead to further problems in the future.
The measure does nothing to help growers in the long term, and farmers in other sectors will not receive help straight away, Mr Narong said.
The cabinet has approved a cash injection of up to 15,000 baht each for more than three million rice farmers nationwide as part of its 364.5-billion-baht stimulus package launched on Wednesday.
The package, approved by Gen Prayut Chan-o-cha's cabinet, is aimed at boosting the economy over the next three months.
The government has insisted its stimulus package is not a populist policy.
The 40-billion-baht cash injection for rice farmers is crucial in helping stimulate the economy, said Deputy Prime Minister MR Pridiyathorn Devakula who oversees the country's economic affairs.
But Mr Narong said the government has failed to understand the problems faced by farmers, saying many growers no longer use their own labour in farming.
Young people now choose to take up jobs at industrial factories instead of farms, leaving the farming industry short of workers, Mr Narong said.
He also said the economic stimulus package will make other farmers think that the government is ignoring them.
Former energy minister Pichai Naripthaphan, who sits on the Pheu Thai Party's economics team, said 1,000 baht per rai for each farmer is not enough.
He said the government should instead help farmers by buying rice for at least 10,000 baht per tonne, because production costs in rice farming are currently very high.
"The government is using populism and is afraid of criticism so is not giving full assistance to farmers, who still have to shoulder the high production costs," Mr Pichai said.
The chairman of the Thai Farmers Association, Wichian Puanglamjiak, also said the 1,000-baht aid is not enough.
He said current production costs for farming are around 5,000 baht per tonne, but farmers sell rice for less than 4,000 baht per tonne, leaving them at a significant loss.
Korn Chatikavanij, former finance minister and former deputy leader of the Democrat Party, meanwhile issued a statement supporting the government's cash injection to farmers.
He also urged the government to find ways to help another 800,000 farming households who still have no land.
