The Thai government agreed today (Tuesday) to set aside 81.2 billion baht to subsidise the rice price guarantee scheme for the 2022-23 rice crops, with an aim to export 7.5 million tonnes of rice next year.

Government Spokesman Anucha Burapachaisri said that the money will be used for parallel projects, such as 7.4 billion baht to stabilise rice prices, about 7.1 billion baht in credits to slow the sale of about 2.5 million tonnes of paddy by farmers, by keeping it in storage, and 18.7 billion baht to pay the difference between the market and guaranteed prices.

The largest tranche, about 55 billion baht, is intended for the project to manage and develop the quality of rice produced by 4.68 million farming households in Thailand. Each household will receive 1,000 baht per 0.16 hectare (one rai) of rice crop, but not more than 3.2 hectares (20 rai) or a limit of 20,000 baht for each household, said Anucha.

About 4.6 million farming households are expected to benefit from the support, which will be paid when the market prices fall below guaranteed prices. The price difference will be between 10,000-15,000 baht per tonne, according to the type and grade of the rice.

Anucha explained that the money to buy paddy from farmers and to keep the crop in storage is expected to absorb about 4 million tonnes for up to six months, until market prices are attractive enough for the grain to be sold from the stockpiles.

He also said that Thailand is expected to export about 7.5 million tonnes of rice, as projected by the Ministry of Commerce.

Source: Thai Public Broadcasting Service