House, Cabinet supports cassava prices in 2023/24 through 4 projects worth more than 370 million baht, hoping to pull excess production from the market, 6 million tons of fresh cassava.
Ms. Kanika Aunjit, Deputy Spokesperson for the Prime Minister’s Office, revealed that the Cabinet meeting (7 Nov. 2023) resolved to acknowledge and approve the Ministry of Commerce’s proposal. According to the resolution of the Cassava Policy and Management Committee (NBMC) on October 25, 2023, to assist with the liquidity of farmer institutions and cassava purchasing operators. Do not rush to release the production. released into the market in large numbers Passed measures to stabilize the price of cassava in 2023/24 of the Department of Internal Trade, 2 projects with a total credit limit of 310 million baht. The government compensates 300 million baht for interest on cassava stocks through the mid-year budget.
The project provides interest support to operators of oil fields, flour mills, and ethanol factories who borrow money from commercial banks or state banks. To increase liquidity to be able to purchase cassava and process and store stocks without rushing to release the production. The operators keep stocks in the form of cassava chips or starch for a period of 60 – 120 days in order to pull excess produce from the market. The target is 6 million tons of fresh cassava roots. The government compensates interest to project participants. At the rate of 4% per year according to the period of stock keeping. And there is a purchase period from 1 January – 31 May 2024, a stock-keeping period from 1 January – 30 November 2024, a project period from 1 December 2023 – 31 October 2025.
Including a project to upgrade the potential of cassava processing. (potato chopper) total amount of 10 million baht to support funding for farmer groups Providing a small cassava chopper with engine and equipment for drying cassava chips Each machine should not exceed 15,000 baht. Target: 650 small cassava choppers. Project period. From Cabinet approval (7 Nov. 2023) – 30 September 2024
For measures to stabilize cassava prices in 2023/24 of the Bank for Agriculture and Agricultural Cooperatives (BAAC), 2 projects with a total credit limit of 60.65 million baht through loans to collect cassava and create additional value. The interest is charged at 4.85 percent (the government is responsible for compensating the interest at the rate of 3.85 percent; the Farmers Institute is responsible for the interest at the rate of 1 percent). A budget of 19.25 million baht is used to help absorb the amount of cassava production. The loan amount target is 500 million baht, production is approximately 200,000 tons, project period from 1 November 2023 – 31 July 2025.
The BAAC also has a project to increase the efficiency of cassava cultivation in 2023/24 using the interest rate according to the project at the MRR rate (currently 6.975%), maintaining the interest rate that the government bears at 3 percent and farmers who enter. Participate in the project and accept the burden at the rate of MRR – 3%, budget amount of 41.4 million baht, supporting the use of appropriate technology. and reduce the cost of cassava production. Target: 3,000 farmers, each not exceeding 230,000 baht, total loan amount 690 million baht, project period from the Cabinet’s resolution (7 Nov. 2023) – 31 October 2026 .
Source: Thai News Agency