FPO plans short-term measures to aid drought-stricken farmers
The Fiscal Policy Office (FPO) will provide short-term assistance to farmers during the first half of this year due to concerns that drought could affect farm income and consumption, while state-run banks will serve as mechanisms for debt moratoriums and
FPO director-general Krisda Chinavicharana said state-run banks would become tools to drive the economy, handling drought-mitigation measures in particular. Somkid Jatusripitak, deputy prime minister in charge of economic affairs, has asked the Finance Ministry to manage the implementation.
Somkid is to meet today with executives of the Government Savings Bank (GSB) and the Bank for Agriculture and Agricultural Cooperatives (BAAC) at the GSB’s head office. The meeting is aimed at assigning policy for both banks to assist the agricultural sector and low-income earners to cope with droughts and to promote agriculture that uses less water.
The GSB and the BAAC are in the process of determining additional relief measures, possibly including debt moratoriums for both principal and interest and special loans for production improvements.
Krisda said the drought relief of Bt1,113 per rai (Bt6,956 per hectare) initially offered by the government might not be sufficient.
Farmers are also being encouraged to get crop insurance, and the BAAC is in discussions on possibly subsidising part of their insurance premiums. At present, 1.5 million rai (240,000 hectares) of crops are insured, of more than 30 million rai in total cultivation.
Krisda said this year the government would pay more attention to the agricultural sector as a result of droughts, and urgent measures would be launched in the first half of the year.
"The deputy prime minister may assign us policy," GSB president Chatchai Payuhanaveechai said. "Both banks will have to find ways for implementation. This will also help relieve the impacts from drought in the long term, aside from recent, short-term measures late last year."
