Commerce Ministry to request Bt43.7 bn to support farm goods

The Commerce Ministry will request a supplementary budget of Bt43.7 billion to support eight major farm goods in a bid to boost farmers' incomes Bt63 billion this year.

Normally, the farm sector generates up to Bt1.2 trillion annually. Farm revenue accounts for 11 per cent of gross domestic product, and up to half of the population, or 32.5 million people, are involved in the sector.

The previous Cabinet approved a Bt110-billion stimulus package for the farm sector, and the new Abhisit Vejjajiva government plans to propose an additional budget of Bt43.7 billion to shore up prices.

Moreover, the ministry has introduced four short- and long-term measures for developing the farm sector, focused on product development; price and production costs; marketing; and image and advertising.

The targets are a result of a ministry meeting with 200 farmers and representatives of more than 30 related associations to learn what was needed to develop the farm sector.

The eight products to be covered by the ministry's supplementary budget, via the price-intervention programme and storage, are

rice, tapioca, maize, shrimp, palm oil, pork, chicken and eggs and fruits.

Commerce Minister Pornthiva Nakasai yesterday confirmed the government would use short- and long-term measures to develop the farm sector and increase farmers' incomes.

For rice, the ministry will delay releasing its stockpiles, in order to ensure a high rice price in the market.

The government plans to sell rice under government-to-government contracts so that releasing the stockpiles will not affect exporters and cause rice prices to drop. Of the supplementary budget, Bt25 billion will be used for the upcoming price-intervention programme.

The government will also help promote alternative energy as a way of increasing prices of fuel crops like cassava root, palm fruit and sugar cane.

The ministry will promote sustainable growth in the farm sector by limiting price-intervention projects to only short-term use, because subsidies are not sustainable, said Pornthiva.

As for long-term measures, the ministry will encourage farmers to produce organic products, sign

farm contracts, receive knowledge

and technology transfers to

produce goods that are traceable and support trading in futures markets.

Former Thai Rice Millers Association president Vattana Rattanawong said he agreed with the government helping boost farmers' incomes during these tough economic times.

"Many unemployed labourers have returned to farming. The government must help increase incomes in the sector to prevent social problems," he said.