Govt plans B76bn more in price top-ups for rice farmers - Fin Min

Govt plans B76bn more in price top-ups for rice farmers - Fin Min

Sparrows fly above a rice paddy in a farm in Bangkok on Nov 17, 2021. (AFP photo)
Sparrows fly above a rice paddy in a farm in Bangkok on Nov 17, 2021. (AFP photo)

The government plans a further 76 billion baht support for rice farmers, the finance minister said on Wednesday, aiming to help ease pressure from falling prices.

The plan, by which the government will pay farmers the difference if crop prices are lower than reference prices set by the state, will seek cabinet approval on Tuesday, Finance Minister Arkhom Termpittayapaisith told a news conference.

It is part of a larger aid package for farmers worth 155 billion baht.

Speaking at a business seminar, Mr Arkhom said monetary policy must stay accommodative to support fiscal policy, while fiscal measures introduced must be supportive of business and households as the government tries to breathe life into its economy.

Future government measures will be for easing the pandemic impact and Thailand must shift to focusing on the domestic economy from high external dependence, he said.

Bank of Thailand (BoT) Governor Sethaput Suthiwartnarueput also told the seminar that fiscal and monetary policy must coordinate to help the economy, which is expected to return to pre-pandemic levels in the first quarter of 2023.

Fiscal policy will remain key for the economic recovery, which will be slow and uneven, he said.

The economy bottomed out in the third quarter and will grow close to forecasts, according to minutes of the BoT's last policy meeting released on Wednesday.

The BoT forecast economic growth of 0.7% this year and 3.9% next year. It has left its benchmark interest rate at a record low of 0.50% since May 2020. 

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