Farmers will have the option to obtain loans to delay selling their freshly harvested paddy rice with a moisture content of 25% for five months. In this period, the government will offer B12,000 per tonne for the rice and an additional B1,500 per tonne for storage costs, targeting an absorption of 3 million tonnes of rice, reports state news agency NNT.
In parallel, cooperatives are encouraged to purchase paddy rice, especially the Thai hom mali fragrant variety, at guaranteed prices to hold until market conditions improve, with the aim to purchase up to 1mn tonnes.
This financial intervention follows a previous scheme where farmers were supported to enhance rice quality, a measure that is pending approval by the National Rice Policy Committee.
Adjustments to the intervention policy on rice are also being contemplated for the next harvest season to augment farmers’ earnings by diminishing reliance on subsidies and focusing on production efficiency and technological integration.
The measures come against a backdrop of market prices for hom mali paddy rice currently below what is deemed fair, as high moisture levels at harvest time significantly reduce the selling price.