The Thai government’s efforts to aid rice farmers have not lived up to expectations, leading to discontent among growers in the world’s second-largest rice-exporting country.
Some farmers are now threatening to protest as they are faced with dropping prices and increasing cultivation costs.
This month, paddy prices have plummeted by 30% compared to last year, averaging around 8,600 baht per tonne, according to the Commerce Ministry.
This development has increased pressure on the Pheu Thai Party-led government to appease rice farmers, who represent a significant electoral base.
“We are not happy with the measures. I think the government is not sincere with the farmers at all,” expressed Thitiwat Kleepmalai, a farm leader from the Sena district in Ayutthaya province, who presented his group’s demands to the government last Wednesday.
On Thursday, the government proposed initiatives totaling 1.89 billion baht to support farmers, including loans to postpone paddy sales, subsidies for storage fees, and coverage of interest payments for rice mills to hold onto the crop.
These proposed measures, still pending cabinet approval, aim to maintain paddy prices above 8,000 baht per tonne, as stated by Commerce Minister Pichai Naripthaphan to the press.
The Ayutthaya group has requested the government’s assistance in selling rice for 11,000 baht per tonne or guaranteeing the same price level, citing production costs of up to 6,500 baht per tonne, according to Mr. Thitiwat.
Despite receiving billions of dollars in subsidies over the last decade, Thailand’s age-old rice farming system is currently strained by climate change, unsustainable agricultural debts, and a lack of innovation.
Mr. Thitiwat indicated that his group plans to collaborate with other provincial farm leaders to organize a larger protest in Bangkok later this month, following a prior demonstration.
“If no further actions are taken, we, along with numerous other rice farmers, are prepared to protest extensively,” stated Pui Saengnak, another farmer from Ayutthaya. “Farmers are enduring significant hardships,” he added.
The return of India to the rice export market, as the leading global supplier, is expected to severely impact Thailand. The ministry anticipates a 24% reduction in rice exports this year, down to 7.5 million tonnes.
This forecast follows a year in which rice exports surged by 13.4% to 9.95 million tonnes, the highest in six years, as reported by the ministry.
