The Cabinet has approved the use of state funds to subsidise half of the 6% interest charged by the Bank for Agriculture and Agricultural Cooperatives (BAAC) on loans granted to farmers for the purchase of chemical fertiliser through farmers’ institutions, community enterprises or outlets endorsed by the bank.
To be eligible for a loan of up to 100,000 baht, farmers must have completed a skills development and cost-efficiency course provided by the BAAC or agencies under the Ministry of Agriculture, said government spokesperson Ratchada Thanadirek.
She added that seeds for cultivation must be approved by state agencies, while the Internal Trade Department will regulate seed prices to prevent overcharging.
Borrowers must be able to service their debt within the specified period, with the BAAC deducting repayments from their bank accounts on a monthly basis, she said.
Loans for the purchase of chemical fertiliser are repayable within 12 months from the date of approval. Farmers will be charged 3% interest, with the remaining 3% subsidised by the state.
The one-year scheme is expected to cost about 30 billion baht, Ratchada said, adding that it is an urgent measure to ease farmers’ financial burden and improve their competitiveness and quality of life.
Farmers interested in the scheme can contact any BAAC branch from today.
