In a significant move to alleviate financial burdens on Thailand’s agricultural sector, the Cabinet has given the green light to a series of measures aimed at suspending farmers’ debts for a one-year period, commencing on October 1, 2023, and concluding on September 30, 2024. The announcement was made by Mr. Chai Watcharong, the spokesperson for the Prime Minister’s Office, on September 26, 2023.
A total of 2.698 million farmers, burdened with a combined debt of 283,327.99 million baht, stand to benefit from this decision. To qualify for the debt suspension, farmers must not exceed a cumulative debt threshold of 300,000 baht across all their contracts as of September 30, 2023. The government will subsidize interest at a rate of 4.5%, utilizing a budget of 11,096 million baht for this purpose.
During the meeting, the Cabinet also deliberated and approved a proposal for the development of measures to rehabilitate debtors of the Bank for Agriculture and Agricultural Cooperatives (BAAC). A budget of 1,000 million baht has been allocated for this initiative. The program is primarily targeted at farmers and customers who participate in the debt moratorium measures and voluntarily opt for potential development. It involves organizing training programs aimed at promoting occupational rehabilitation for debtors participating in the measures.
Furthermore, the Cabinet meeting acknowledged the formation of a working group tasked with determining measures to suspend the debt of farmers and small and medium-sized enterprise operators (SMEs) impacted by the COVID-19 outbreak. This suspension is proposed for periods of three years and one year, respectively. Mr. Chulphan, Deputy Finance Minister Amornvivat, has been appointed as the chairman of this working group, with the Fiscal Policy Office serving as the secretary. This initiative underscores the government’s commitment to addressing the economic challenges posed by the ongoing pandemic.
The Cabinet’s approval of these measures reflects a concerted effort to ease the financial strain on farmers and support the agricultural sector, which is crucial to Thailand’s economic stability. The upcoming debt suspension is expected to provide much-needed relief to millions of farmers grappling with mounting debts, contributing to their financial well-being and the overall resilience of the nation’s agricultural industry.