Prayut defends cash freebie to farmers

Prayut defends cash freebie to farmers

Prime Minister Prayut Chan-o-cha on Friday defended his government's plan to dole out cash to farmers but warned them that the freebies are not forever.

Farmers still need help while they are adjusting to the change from the end of rice subsidies from previous governments, Gen Prayut said on his weekly "Returning Happiness to the People" TV programme.

The cabinet on Wednesday agreed to give 40 billion baht in cash to rice farmers to help them cover their cultivation costs, in hopes that they will spend it in ways that will stimulate the economy. Farmers with less than 15 rai of land will receive 1,000 baht per rai while those with larger plots will be given a flat 15,000 baht per household.

Both the Democrat and Pheu Thai parties criticised the giveaway as populism. But Deputy Prime Minister Pridiyathorn Devakula and Finance Minister Sommai Phasee dismissed the criticism, saying the government had no need to bolster its popularity since it wasn't running for election.

The prime minister echoed their sentiments and added: "In order to help rice growers adjust to the change in the rice selling system, the government will aid them in the form of financial assistance."

Gen Prayut said the cash payment was a one-shot measure that would not be repeated after this season.

"This applies only to in-season rice. Off-season rice growers will not be eligible because of the water shortage," he said and reiterated his administration's policy to end price intervention while letting demand and supply to dictate the price.

Thailand is sitting on huge rice stocks estimated at up to 18 million tonnes, most of it purchased directly from farmers at prices 40-50% above real market rates by the previous government. The Commerce Ministry is trying to find markets overseas for the grain.

The country is on course to sell 11 million tonnes of rice this year if talks with Indonesia, the Philippines and Iran are successful, Gen Prayut added.

The cash for farmers is part of a 364.5-billion-baht stimulus package intended to bolster the domestic economy amid a gloomy outlook for exports.

Gen Prayut, who retired from the army on Sept 30 but still controls the National Council for Peace and Order (NCPO), said that all of the stimulus money would directly benefit the recipients, insisting there would be no corruption along the way.

He said his government would prove that local people can receive the full amount of "the candy" and not just a piece of it or only the wrapping as happened under previous governments.

"I will not let anyone tear open the candy wrapper and eat the candy midway through or before it reaches the people," he said.

The prime minister also used his TV show on Friday to make a surprising push for bicycling, saying it was in line with the government's policy to save energy, alleviate pollution, and promote good health.

He promised to promote safe biking and build routes for bicycles in every location across the country with the Interior Ministry being a main driver to turn the plan into reality.

"We will promote the creation of safe bike routes for cyclists and expand the coverage of such routes into all regions," he said. "I ask that these routes be created in every province and in all locales."

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