Bangkok: Government spokesperson reiterates that the criteria for the "50/50 interest rate" loan program aim to mitigate the impact of price volatility from the global situation. The government spokesperson reiterated the criteria for the "Half-Interest Loan" program, aimed at reducing the cost burden for small-scale farmers. Farmers can borrow up to 100,000 baht, with the government paying 3% interest, mitigating the impact of price fluctuations from the global situation.
According to Thai News Agency, Ms. Ratchada Thanadirek, spokesperson for the Prime Minister's Office, revealed that following the Cabinet's approval of measures to mitigate the impact on farmers, the government has assigned the Bank for Agriculture and Agricultural Cooperatives (BAAC) to prepare a "Half-Interest Loan" project to reduce production costs, with a total budget of 30 billion baht. This aims to assist small-scale farmers in purchasing fertilizers and other production inputs, thereby mitigating the impact of fluctuating prices due to global circumstances.
The government will subsidize 3% of the interest per year, from the normal interest rate of 6%, resulting in farmers paying only 3% interest per year. The maximum loan amount per person is 100,000 baht, with a repayment period of 12 months from the date of loan disbursement and no later than April 30, 2029.
The rules and conditions for participating in the "Half-Interest Loan" project are as follows:
1. Must undergo training/learning for skills development and cost management (Reskill/Upskill) by BAAC, agencies under the Ministry of Agriculture and Cooperatives, and/or other collaborating agencies, such as efficient fertilizer use based on soil analysis, etc.
2. Use the loan funds to purchase fertilizer through farmer institutions, farmer groups, or community enterprises participating in the co-payment scheme, or other sources as determined by the Bank for Agriculture and Agricultural Cooperatives (BAAC).
3. Use certified varieties/seeds as recommended by government agencies under the Ministry of Agriculture and Cooperatives or as specified by the Bank for Agriculture and Agricultural Cooperatives (BAAC), and sell them to farmers at a fair price. The Department of Internal Trade, Ministry of Commerce, will control the price to ensure it meets the established standards.
4. Borrowers can repay the loan within the timeframe set by the Bank for Agriculture and Agricultural Cooperatives (BAAC). Borrowers receive payment for their produce through their BAAC deposit account and agree to allow BAAC to deduct loan repayments from their deposit account.
The 'Half-Interest Rate Co-Pay' project is an urgent government measure to help reduce the cost burden for small-scale farmers amidst the volatility of fertilizer, energy, and transportation prices. It also aims to elevate Thai agriculture towards 'precision and sustainable agriculture,' enhance competitiveness, and improve the quality of life in the long term. Farmers can inquire for more details at all BAAC branches nationwide.