BANGKOK, 2 June 2014 – The Bank for Agriculture and Agricultural Cooperatives (BAAC) is proposing a rice field insurance scheme to the National Council for Peace and Order (NCPO) that would carry a 494 million baht budget.
BAAC Manager Lak Wajananawatch said that the bank is planning to propose an insurance scheme for nationwide rice fields insurance comprised of 7 types of coverage. The coverage is divided into two levels; coverage for damages from the government at a rate of 1,113 baht per Rai and coverage from insurance companies at a rate of 1,111 baht per Rai.
In the plan, farmers would have to pay 60-100 baht per Rai for insurance premiums depending on area conditions, the rest of the premiums will be paid by the government. The budget of 494 million baht will cover 1,500,000 Rai of rice fields.
Mr. Lak added that Air Chief Marshal Prajin Juntong, the economic chief of NCPO, is interested in policies that help farmers in the scope of fiscal discipline that don’t distort the mechanisms of the market.