14-11-2023 (BANGKOK) In a bid to support the struggling agricultural sector, Thailand’s cabinet has given the green light to a package worth 56 billion baht ($1.55 billion). The measures include direct cash handouts to rice farmers and a significant increase in the price of domestic sugar. The announcement was made by government spokesperson Radklao Inthawong Suwankiri on Tuesday.
Under the new scheme, rice farmers will receive a 1,000-baht handout for each rai (0.16 hectares) of land, with a cap of 20 rais. The initiative is expected to benefit approximately 4.68 million households, providing much-needed relief to those facing financial difficulties.
This support program comes in addition to the 55 billion baht worth of loans that were approved last week to assist farmers grappling with low prices. The government is taking proactive steps to alleviate the burdens faced by the agricultural community, recognizing the vital role they play in the country’s economy.
In another move aimed at bolstering the agricultural sector, the cabinet has approved a 10 percent increase in domestic sugar prices. This decision follows the recent reversal of a 20 percent price hike, during which domestic sugar prices were classified as a controlled good. The new classification necessitates additional approval for exports exceeding 1 metric ton.
Commerce Minister Phumtham Wechayachai emphasized that the latest price adjustment is a necessary measure to account for the expenses incurred by sugar cane farmers. By increasing domestic sugar prices, the government aims to provide a fair and sustainable income for those involved in the sugar industry.
Thailand holds the distinction of being the world’s second-largest exporter of sugar, trailing only behind Brazil. However, the country has been grappling with challenges such as drought, which has significantly impacted sugar output. Government data reveals that Thailand is projected to produce 8 million tons of sugar this year, with 2.5 million tons consumed domestically and 5.5 million tons exported.
In 2022, Thailand exported 7.69 million tons of sugar, underscoring its importance as a major player in the global sugar market. The recent measures implemented by the government aim to stabilize the industry and provide much-needed support to farmers affected by adverse conditions.
