The Ministry of Commerce has asked businesses to lower retail prices for Thai rice, as it continues to increase in price and global demand in spite of the shortage in supply due to the ongoing drought and coronavirus pandemic.
Commerce Minister Jurin Laksanawisit said on Wednesday that 18 brands of rice have lowered their prices by up to 50 per cent to ensure that Thai people are fed during lockdown.
Seven types of rice from 18 brands will lower prices as of Thursday onwards until June 30 at Big C, Siam Makro, Tesco Lotus, Tops and the Mall’s branches.
Earlier, the ministry launched hundreds of Phum Phung trucks to sell products considered to be essential necessities at cheaper prices during the outbreak. These include face masks, hand sanitizers, rice, eggs, instant noodles and canned fish. Jurin said the second lot of discount products are coming.
Rice insurance
On Wednesday, the cabinet approved a rice insurance scheme worth 2.91 billion baht for the 2020-2021 season. The scheme will cover 45.7 million rai of paddy covering 75 per cent of total rice farming land, compared to the coverage for 30 million rai worth 1.74 billion baht in 2019-2020 season.
Operated by the Bank for Agriculture and Agricultural Cooperatives (BAAC), the scheme covers seven natural disasters including floods, drought, storms, cold, hail, fires and wild elephant.
The premium for this season is separated into three groups, which is different from last year, because of the ongoing drought.
The first group is for seasonal farmers who have received an approval for loan from the BAAC to grow their rice this season at a premium of 97 baht per rai for no more than 28 million rai. This group covers all risk levels from low to high.
The second group is for seasonal farmers who are not BAAC’s customers and are growing in areas with low levels of risk from 594 villages at a premium of 58 baht per rai for no more than 15.7 million rai.
The third group is for farmers who are not BAAC’s customers that are growing in areas with mid-to-high risk levels. The premium for mid-level risk areas is set at 210 baht per rai and 230 for high-level risk areas at no more than one million rai.
The government will pay 58 baht per rai as a subsidy for all three groups. For the first group, the BAAC will pay the remaining 39 baht. For the remaining two groups, only the government will help with the 58 baht subsidy, the rest will be paid by the farmers.
According to the Thai General Insurance Association (TGIA), the total claims for crop insurance has reached 3 billion baht in 2019 with a loss ratio of 150 per cent.
The 150 per cent claim ratio is the highest in the past four years, excluding the great flood in 2011 when claims were at 700 per cent. The TGIA expects the claims loss ratio to hit 200 per cent in 2020 because of expected natural disasters throughout the year.
