Rice price subsidy slashed by THB80bn as market price rises
The government will slash the budget for next year’s rice price scheme from 150 billion baht to 66 billion baht in line with rising market prices, according to a source with knowledge of the matter.
BangkokBiz reported on Monday that Prime Minister Prayut Chan-o-cha met with Commerce Minister Jurin Laksanawisit to seek solutions for the fourth year of the price-guarantee scheme, which will go before the Cabinet for approval tomorrow.
The source said the Finance and Commerce ministries have agreed to reduce the budget by around 80 billion baht.
The source said the budget cut would not affect the amount of money received by farmers as the market price of rice has risen.
The budget will be adjusted if the rice price rises significantly and even less subsidy is needed.
The source said the rice price guarantee budget will be reduced from 86.740 billion baht to 18 billion baht in line with the current price of rice.
Moreover, the budget for cost reduction and rice management for farmers at 1,000 baht per rai will be reduced from 55.364 billion baht to 40 billion baht.
The missing 15 billion baht will come from the Rice Department.
The budget changes will be proposed to the Cabinet for approval on Tuesday, the source said.
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