The National Council for Peace and Order (NCPO) is considering a proposed "cultivation subsidy" and soft loans to help rice growers.
Assistant army chief Gen Chatchai Sarikalya, deputy chief of the NCPO supervising economic affairs, had a meeting with representatives of government organisations, rice millers and rice growers to discuss assistance for farmers at the Army Club on Vibhavadi Rangsit Road in Bangkok on Wednesday.
After the meeting, Gen Chatchai said that participants agreed with the idea of a "cultivation subsidy" and soft loans for rice growers nationwide in the 2014/2015 crop season.
The subsidy was set at 500 baht per rai (1,600 square metres) for up to 15 rai (24,000 square metres) per family, based on rice growers' estimated cultivation costs of about 4,000 baht per rai.
The Bank for Agriculture and Agricultural Cooperatives (BAAC) will arrange for the low-interest loans.
Gen Chatchai said these measures would be proposed to NCPO chief Gen Prayuth Chan-ocha. If he gives approval, they can be implemented right away.
Earlier, Gen Prayuth announced the end of rice price intervention schemes - a reference to the previous government's rice-pledging scheme and the rice price insurance schemes of past governments.
After Wednesday's meeting, Prasit Boonchoei, president of the Farmers Thai Rice Association, said farmers wanted cash subsidies but the NCPO doubted farmers would spend the money on rice cultivation. Therefore, the council would introduce the subsidy in the form of cultivation material, he said.
He also said that the NCPO refused to expand the subsidy to cover 50 rai (80,000 square metres) of paddy field per family, as farmers sought, because that would overly affect the national budget.
Wichian Phuanglamjiak, president of the Thai Agriculturist Association, said he was satisfied with the NCPO's ideas. He also said that participants in the meeting expected farmers could sell rice at 8,000-9,000 baht per tonne. He said he felt fine with the price.
BAAC president Luck Wajananawat said his bank would cut its loan interest by three percent for rice growers and the reduction would be equivalent to 150 baht per rai. The interest cut will last six months.
Meanwhile, suppliers of chemical fertilisers, pesticides and other cultivation materials agreed to cut their product prices in a way that rice growers' costs would drop by 432 baht per rai. That would decrease rice growers' costs from 4,787 baht by 582 baht per rai, Mr Luck said.