Government Unveils 58.9 Billion Baht Rice Support Package
The Thai Cabinet approved a 58.9 billion baht package of five measures to support rice prices for the 2026/27 crop year. The plan offers low-interest loans so farmers can delay sales, funds cooperatives to buy and process paddy, compensates traders for stockpiling, and promotes premium rice production. Officials say the goal is to prevent distress selling during peak harvest and restructure the industry for long-term farmer income stability.
Deputy Government Spokesperson Lalita Periswathana revealed that the government prioritizes rice price stability and farmer welfare. The Ministry of Commerce, under Deputy Prime Minister Supachai Sutthiphan, submitted five measures to the Cabinet under the "New Rice Economy" framework, totaling 58,912.64 million baht — split into 49,275 million baht in loans and 9,637.64 million baht in loss compensation. The funds aim to absorb the large harvest hitting markets in October–November and ease pressure on paddy prices.
Key measures include a 40,928.39 million baht loan scheme targeting 3 million tons, letting farmers store rice until prices improve. Loan rates vary by variety: 13,000 baht/ton for Hom Mali, 11,500 for off-area Hom Mali, 6,500 for white rice, 8,500 for Pathum Thani, and 9,500 for glutinous rice. The government covers interest for participating farmers and agricultural institutions.
A second 15,656.25 million baht loan program helps cooperatives and farmer groups collect 1.5 million tons for sale or processing. Cooperatives pay just 1% annual interest, with the government covering the remaining 3.5%, improving liquidity and bargaining power.
Additional schemes include 564 million baht in interest compensation for rice traders stockpiling 4 million tons, and 1,680 million baht to absorb 3 million tons of paddy at market-based prices. Finally, 84 million baht supports 266 farmer groups (300,000 baht each) under "Premium Rice Phase 2" to develop production, processing, and marketing channels for high-quality rice.
Lalita noted the Finance Ministry trimmed the compensation budget for the delayed-sales loan to match actual expected costs, while the paddy absorption scheme awaits funding approval — likely from the Farmers Assistance Fund. The government aims to prevent distress selling during peak harvest, expand purchasing channels, and support premium rice processing, framing the measures as both short-term price support and long-term structural reform to add value to Thai rice and secure sustainable farmer income.
