Thai Govt offers Bt35 bln credit to farmers

CHIANG MAI, November 1 (TNA) - In an attempt to assist farmers and to shore up rice prices, Thailand's government-operated Bank for Agriculture and Agricultural Cooperatives (BAAC) Saturday began offering interest-free loans amounting 34.79 billion baht to farmers, Finance Minister Sommai Phasee announced. In his capacity as BAAC chairman Sommai said that the cabinet had already approved participation by farmers in the North and Northeastern regions in applying for loans. Opening today, the programme ends on September 30 next year. It is designed to assist farmers in the two regions from slowing down selling paddy during 2014/2015 production. With cabinet approval, BAAC will start disbursing loans from November 1 until February 28, Sommai said. Farmers must settle their debt within four months, starting from the month they receive the money. Sommai said farmers wishing to join the programme must mortgage their fragrant Hom Mali paddy or glutinous paddy with the BAAC while the Rice Policy and Management Committee is authorised to approve loans amounting to a maximum of 90 per cent of the market price. Each farmer can borrow a maximum of 300,000 baht. The BAAC has another loan programme for rice farmers wishing to build or renovate rice silos. The 1-billion bath loan programe is designed to assist farmers in keeping their rice to enable them to sell their produce when the prices are right, he said. Farmers wishing to apply for loans which would be spent on constructing or renovating a silo could do so at the agricultural bank. The programme began on October 1 this year and ends on the coming September 30. (TNA)