Ministry asking rice mill owners to buy paddy at 100 – 200 baht higher than market

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BANGKOK, 15 July 2014 -The Ministry of Commerce has continued to support rice farmers by asking rice mill owners to buy paddy at a price per ton 100 – 200 baht higher than the market price in the production year 2014/15, in exchange for being offered a 3% deposit on loans. The Acting Director General of the Internal Trade Department Jintana Chaiyawannakarn said that the authority will not continue the rice pledging program nor intervene in the market to help farmers as previously done.

Instead, it will try to reduce cost factors in production such as chemical fertilizer, pesticides, harvesting machines and farm rental costs. In addition, during the rice harvesting season in the following one or two months, the ministry will proceed to appoint private sector and rice mill operators to buy paddy from farmers at a price about 100 – 200 baht per ton higher than the market price in November. These buyers will be offered loans with only a 3% deposit to be able to purchase the rice. Moreover, they will also be asked to stock the rice for 3 – 6 months, that is from November 2014 to July 2015 to maintain the price in the market.