THURSDAY, March 28, 2024
nationthailand

Bt70 bn set for farming entrepreneurs

Bt70 bn set for farming entrepreneurs

THE BANK for Agriculture and Agricultural Cooperatives (BAAC) is planning to launch a 4-per-cent-interest loan with a budget of Bt70 billion to support around 7,200 small and medium-sized enterprises in the agricultural sector that have the potential to b

The new loan budget will support the government’s economic plans to shift Thailand from an export-led economy towards a domestic-led one amid the ongoing Thai slowdown and the new norm of low economic growth in major global markets. 
“All five tangible measures that were agreed upon today will definitely be implemented this year,” Somkid Jatusipitak, deputy prime minister in charge of economic affairs, said yesterday after signing five memoranda of understanding with around 30 public and private organisations on ways to steer the “Pracharat” ideology of economic partnerships among the people, government and the private sector. 
Among the prominent agencies and institutions inking the MoUs were the Community Organisations Development Institution, the Internal Trade Department, the BAAC, the Government Savings Bank (GSB), the Industrial Promotion Department, the National Farmers Federation, the National Innovation Agency, the Federation of Thai SMEs, the National Village and Urban Community Fund Office, the Designated Areas for Sustainable Tourism Administration, Biz Club Thailand, CP All, Tesco Lotus and Big C Supercenter.
The first of the MoUs is for the National Village and Urban Community Fund Office to compile investment plans on local infrastructures from farmers, local communities, governors and local government before coming up with a budget for community projects that are most beneficial for local people as a whole, and for Pracharat projects such as storage facilities, processing and drying factories, and production equipment and machinery.
The second MoU involves the GSB and the BAAC seeking out and supporting “smart” farmers – entrepreneurs in the agricultural sector – as local SME role models to promote the production of value-added and innovative local products.
In this regard, the Finance Ministry and the Board of Investment are currently working on extra incentives such as tax-reduction measures for large companies that are willing to support and co-invest with local entrepreneurial farmers and agricultural SMEs to help with the upgrading |of the quality of locally made products.
“Initially we are thinking about a total budget of Bt70 billion for the ‘One Tambon One Agricultural SME’ initiative, and the bank does have enough internal budget to fund the measure, which will be submitted for the board’s consideration. Our chairman and Finance Minister Apisak Tantiworawong have already arranged a meeting on this issue, which is scheduled for next week,” said BAAC president Luck Wajananawat.
 
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“We are not worried about non-performing loans, as there will be a selection process for the local agricultural entrepreneurs and SMEs that we will support, and we already have some in mind,” he added. 
The repayment period for the loans, which will no more than Bt10 million per operator at an interest rate of 4 per cent, is set at 10 years.
The measure is set to kick off next month, while the products supported by the loans should be able to make their way on to the shelves of modern retailers by the second half of the year, Luck said. 
The third MoU involves Commerce Ministry “Pracharat Market” projects around the country to help with the selling of locally made agricultural products, as well as negotiations with modern retailers and companies within Asean to support the products.
The fourth MoU, meanwhile, involves efforts by the Tourism Authority of Thailand, the Designated Areas for Sustainable Tourism Administration and the Tourism and Sports Ministry to promote local products via investments to upgrade local tourism via a “One Amphoe One Tourist Destination” measure, to attract more Asean and domestic travellers to such areas.
State-run PTT has already agreed to provide extra space in its service stations around the country for the selling of locally made products within each area, Somkid said. 
The fifth MoU involves the National Broadband strategy to support the improvement of education ion in local areas and the development of e-commerce as another outlet for locally made products.
“All five MoUs have already won Cabinet approval and their investments will definitely commence this year,” the deputy PM said. 
 
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