The government has agreed in principle to a guideline to help alleviate farmers' debt burden to the Bank for Agriculture and Agricultural Cooperatives (BAAC).
Proposed by BAAC, the guideline features writing off outstanding debts owed by farmers who were no longer unable to service debts or who passed away. It will also extend the debt repayment period for those who still have the ability to repay.
Farmers hit hard by drought would be entitled to not only debt suspension but also new loans to rehabilitate their farming, Deputy Prime Minister MR Pridiyathorn Devakula said yesterday after an economic ministers' meeting chaired by Prime Minister Prayut Chan-o-cha.
The Agriculture Ministry earlier estimated farmers in the proposed aid guideline owed a combined 4.5 billion baht to the state-owned bank.
The ministry was told yesterday to conduct criteria and compile the numbers of farmers and budget to propose for the cabinet's consideration next week.
A farmer helps to unload paddy from a plantation in Bangkok's Nong Chok district to a milling plant nearby. The Bank for Agriculture and Agricultural Cooperatives plans to write off debts for certain groups of farmers. PATIPAT JANTHONG
The Royal Irrigation Department recently warned this year's dry season would be one of the worst in almost 20 years.
Despite its assurance that sufficient water management mechanisms are in place to help people in drought-affected areas, the department early this month admitted the volume of water in the country's major reservoirs is now at its lowest in 15 years. The situation is likely to worsen as drought-hit areas are expected to expand.
Nakhon Ratchasima, Chaiyaphum, Lop Buri, Maha Sarakham, Nakhon Sawan, Sukhothai, Sakon Nakhon and Buri Ram have been designated as drought-affected provinces by the Interior Ministry.
In a related development, MR Pridiyathorn said yesterday's meeting also agreed in principle to allow the Finance Ministry to borrow an additional 40 billion baht from abroad to finance highway development and improvement as part of measures to spur the economy in the second half of the year.
And in another development, the meeting also agreed in principle to set up the long-awaited National Savings Fund and transfer 2.5 million workers under Section 40 of the Social Security Act who are in the informal sector to it.