Hanoi (VNA) – The Thai government announced onSeptember 1 that it will provide 2.2 billion USD in loans and handouts tofarmers to stabilise prices of rice – a staple food that has long played astrategic role in the country’s politics.
Specifically, the Thai Ministry of Commerce will offer 1.57billion USD in handouts to rice farmers and 633 million USD worth of loans to3.7 million households. The programme will be carried out from early Novemberto the end of February, 2018.
The announcement came a week after former Prime MinisterYingluck Shinawatra fled into exile ahead of a court verdict on the accusationof her negligence in a rice subsidy scheme that caused losses of billions ofUSD.
Last year, the government introduced similar short-termloans and cash handouts for rice farmers that cost the State 2.3 billion USD tocover four million households.
After hitting a four-year high earlier this year, the priceof Thai 5-percent broken white rice has tumbled by nearly 20 percent over thelast two months to 372.5 USD per tonne, its lowest since April.
The domestic and foreign consumption of Thai rice isestimated at 26.4 million tonnes this year compared to the supply of 29.5million tonnes.-VNA
The Thai Rice Exporters Association has revealed that the price of Thai rice has reached 425 USD per tonne, due to the decreasing supply of rice on the global market.
Thailand has exported 5.5 million tonnes of rice during the first five months of this year and is expected to reach its export target of 11 million tonnes by the end of the year.
Bangladesh and Sri Lanka are negotiating an urgent purchase of about 400,000 tonnes of rice from Thailand to replenish their falling stocks which were caused by severe droughts and floods, according to Thai media.
Eleven rice exporters of Thailand has planned to buy all 160,000 tonnes of edible rice in national reserves, which was put for the third rice auction this year.
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