Thailand approves price guarantee schemes for rice, rubber hinh anh 1Rice sold at a supermarket in the Thai capital city of Bangkok. (Photo: VNA)

Bangkok (VNA) Thailand’s cabinet has given the nod to price guarantee schemes for rice and rubber worth a combined 61.9 billion baht (around 2 billion USD).

The two schemes will be handled by the state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC).

Of the total budget, 51.2 billion baht is allotted towards the rice scheme for the 2020-2021 season and 10.0 billion baht for the second phase of the rubber price guarantee scheme for the 2019-2020 season.

According to Prime Minister Prayut Chan-o-cha, the annual 2020-21 rice scheme is scheduled to be implemented between October 2020 and May 2021.

The rice price guarantee offers compensation if market prices fall below the benchmark. The scheme will offer guaranteed prices at the same rates as during the previous season.

The cabinet has also approved an interest-free loan scheme for farmers who agree to delay selling their grains. The lending scheme will run from November 1, 2020, to February 29, 2021.

For rubber, the second phase of the programme is scheduled for October to March, offering a guaranteed maximum price of 60 baht per kg for raw rubber sheet, 57 baht per kg for latex, and 23 baht per kg for cup lump, limited to 25 rai per family./.