Co-pay gripes prompt 30-billion-baht fertiliser subsidy rethink

Rice fields in Phak Hai district in the northwestern part of Ayutthaya province in central Thailand. (Photo: Karnjana Karnjanatawe)
Rice fields are present in the northern Ayutthaya province’s main Thailand’s Phak Hai district. ( Photo: Karnjana Karnjanatawe )

4.68 million corn farmers will need to evaluate the 30-billion-baht manure subsidy program because it appears to be having trouble with the plan, according to the National Rice Policy and Management Committee.

The structure, intended to help reduce farmers ‘ costs, has been met with a barrage of criticism mainly due to the program’s co-pay condition.

Under the payment, farmers may receive at most 500 baht per ray, or up to 10, 000 ringgit per man. But, producers would be required to pay half the costs upfront.

Producers contend that they would only be able to purchase fertilizer from the participating partnerships and that they would need to take out loans to get money for it.

The state is increasingly pressing for the repeal of the earlier program, where farmers were paid 1,000 baht per ray to purchase essential supplies.

Prayoon Insakul, the everlasting director for crops, said on Saturday the government has gathered insight from all partners including producers, and agreed the plan should be reviewed.

The action is in line with an education from Agriculture and Cooperatives Minister Capt. Thamanat Prompow, who advised him to move forward with discussions with various department managers.

Mr. Prayoon claimed that the majority of landowners are unable to pay the co-payment need, and that many have already purchased fertilizer as the growing season has already begun.

The continuous minister said more than 2.91 million producers registered with the government have started planting, covering 39.6 million ray, which represents 63.23 % of total rice cultivation.

Also, there are inadequate cooperatives to disperse the fertiliser, and the plan may disrupt the cooperatives ‘ personal fertiliser sales programme, he said.

Mr. Prayoon stated that the government may request that the National Rice Policy and Management Committee review the rebate program and send its recommendation to the cupboard for a recommendation on whether to make changes.

The cabinet’s initial decision on June 25 to approve the compost rebate has caused controversy ever since. The plan was defended on Friday by Deputy Prime Minister and Commerce Minister Phumtham Wechayachai, who claimed it did not replace the 1,000-baht per ray payment.

He claimed the 1, 000-baht per ray payment was a measure to offset the price decline, adding that it could be reinstated as needed in the future.

On the other hand, the compost rebate program was supposed to lower production costs, but it was postponed because the MPs failed to communicate with the producers.