The cabinet on Tuesday approved a lower amount for the income guarantee scheme for rice farmers for the main crop of the 2022-23 season.
Spending was trimmed by almost 69 billion baht to 81.2 billion from the 150 billion approved in September by the National Rice Policy and Management Committee.
Speaking after the cabinet meeting, Commerce Minister Jurin Laksanawisit said the spending will be divided into three batches, with the first batch worth 18.7 billion baht slated for compensation.
The second batch is for parallel support measures to ensure rice price stability worth 7.5 billion baht, while the third worth 55 billion is to support the cost reduction and rice management scheme for farmers at 1,000 baht per rai, he said.
The compensation for eligible farmers will be directed through their accounts with the Bank for Agriculture and Agricultural Cooperatives, likely next week, said Mr Jurin.
The income guarantee scheme covers 28.5 million rai of rice farmland nationwide and 4.68 million households.
The scheme's criteria are the same as the previous three years. Under the income guarantee plan, farmers receive the difference between insured rice prices and benchmark prices that change every two weeks, in line with market prices.
The scheme covers five main types of rice: white rice paddy with 15% moisture, hom mali rice paddy, fragrant Pathum Thani rice paddy with 15% moisture, glutinous rice paddy with 15% moisture, and provincial fragrant rice paddy.
Internal Trade Department director-general Wattanasak Sur-iam said the lower spending in the scheme was attributed to higher rice prices.
The prices of rice paddy, especially for hom mali fragrant rice, have exceeded the guarantee prices offered by the scheme, resulting in lower government spending for the scheme.
The price of hom mali rice paddy is now quoted at 15,000 baht per tonne compared with only 11,000 baht a tonne in the previous season, while white rice paddy with 15% moisture is now 9,200 baht per tonne, up from 7,800 baht per tonne last year.
In a related development, the cabinet approved the extension of the diesel tax cut for another two months, aiming to mitigate the impact of high energy prices.
Upon cabinet approval, the excise tax cut of five baht per litre for retail diesel prices will be extended for two months until January next year.
The excise reduction, which initially started with a three-baht cut in February, was scheduled to end on Nov 20 this year.
Finance Minister Arkhom Termpittayapaisith said the extension of the reduced diesel excise tax is aimed at easing living costs.
Although the global crude oil price has declined, the global diesel price has yet to drop, he said.
The Oil Fuel Fund still faces liquidity problems, Mr Arkhom said.
As of Nov 13, the fund had posted a loss of 130 billion baht.
