The cabinet has approved a debt suspension plan for farmers, a deputy minister of finance said on Tuesday.
The suspension will last three years and will cost the government 11 billion baht (US$302.78 million), Julapun Amornvivat told reporters.
The suspension will begin on Oct 1, Mr Julapun said, adding that farmers would also be allowed to borrow up to 100,000 baht each from the Bank for Agriculture and Agricultural Cooperatives (BAAC).
About 2.7 million farmers are eligible to join the programme, he said.
The new government, which took office last month, has prepared fresh policies to stimulate a sluggish economy weighed down declining exports and falling investor confidence.
The Finance Ministry is also planning to offer incentives to farmers choosing not to enter the debt suspension programme aimed at reducing the government's fiscal burden, according to a ministry source who requested anonimity.