Thai govt will suspend debt payments for more rice farmers

[webfact]

Govt will suspend debt payments for more rice farmers

 

BANGKOK, 19 April 2017 (NNT) -The Cabinet on Tuesday approved a 1.5-billion-baht debt suspension program for rice farmers who were affected by produce price drop. 

Adviser to the Minister of Commerce Natthaphon Jatusripitak said the program will suspend debt payments for the farmers who have cultivated rice from 2016-2017 and the government will subsidize the interest rate for them by 3% a year. The program is the government’s extension of assistance to rice farmers who are members of agricultural cooperatives. 

The farmers’ indebtedness resulted in decreasing income but they still had to pay for necessary expenses, said the adviser. 

The Department of Cooperative Promotion will gather information and details of the participating farmers in order to avoid duplication with those who are debtors of the Bank for Agriculture and Agricultural Cooperatives. These farmers have already given the right to debt suspension from the government earlier.

 

-- nnt 2017-04-19

[pookiki]

I don't quite understand all the intricacies of this program.  However, I would think that price supports are a better option that making farmers face increased indebtedness.  But people go to jail for price subsidies.

[Srikcir]

9 hours ago, webfact said:

The Cabinet on Tuesday approved a 1.5-billion-baht debt suspension program for rice farmers who were affected by produce price drop. 

This subsidy follows an approved three programs about a week ago aimed at developing rice production output, with a budget totaling over 25 billion baht and the government's 130 billion baht budget for the assistance program initiated in November 2016. Money seems to be a good alternative to Article 44, especially when its taxpayer money.

 

On another note wherein entrepreneurs are now allowed to rice directly from farmers by cutting out middlemen, farmers can sell rice online and to third parties directly under the government's Buy Rice Campaign, such programs have apparently failed to provide for sustainable rice prices. Again its taxpayer funds that come to the rescue.

[rocketman777]

Its something but  debt cancellation    would be better both for the farmers and the overall economy

[Jonmarleesco]

Long past the time when farmers were introduced to alternatives to the ubiquitous rice crop. Might save the taxpayer some money, too.

[Srikcir]

22 hours ago, pookiki said:

people go to jail for price subsidies

That's only "bad" people and not "good" people.

Ironically, "good" people are those who have the power to do bad without being labeled "bad."

Welcome to the junta's reformed authoritarian society.