The Bank for Agriculture and Agricultural Cooperatives (BAAC) will pay financial aid to farmers under the income guarantee scheme starting on Tuesday.
Somkiat Kimawaha, the BAAC's senior executive vice-president, said on Saturday the cabinet on Thursday approved a proposal by the Commerce Ministry to allow the BAAC to carry out the rice farmers' income guarantee programme for the 2021/2022 harvest year, worth 13.2 billion baht.
The project is aimed at providing rice farmers with a cushion against risks of operating at a loss, he said.
The project will also help reduce the onus on the government to prop up falling crop prices caused by the Covid-19 outbreak, economic slump and flooding, and also help keep the market mechanism operating normally, Mr Somkiat said.
Under the project, financial aid will be offered to farmers who grow five varieties of rice.
Those who grow Hom Mali paddy rice will receive 15,000 baht per tonne, but capped at no more than 14 tonnes per household, Mr Somkiat said.
Farmers who grow Hom Mali rice outside the 20 provinces in the Northeast and three provinces in the North will receive 14,000 baht per tonne, limited to 16 tonnes per household, while farmers who grow white paddy rice will get 10,000 baht per tonnes, capped at 30 tonnes, he said.
Those who grow Pathum Thani paddy rice will receive 11,000 baht per tonne, on up to 25 tonnes per household, and farmers who grow glutinous paddy rice will get 12,000 baht per tonne, limited to no more than 16 tonnes per household.
"Payment of the financial aid will start on Tuesday, with 492,571 farming households to receive 10.92 billion baht," Mr Somkiat said.
Farmers who wish to receive the aid must register as rice farmers for the 2021/2022 harvest year with the Agriculture and Cooperatives Ministry and tell the ministry the date of their expected harvests, he said.
The Department of Agricultural Extension will forward the information to the BAAC so the bank will pay the money directly into farmers' bank accounts. Farmers can check the payments via the BAAC's A-Mobile app, Mr Somkiat said.