Bangkok: The "Half-Interest Loan" program is moving forward to help farmers reduce their burden of purchasing fertilizer and seeds. Supajee stated that the government is moving forward with the "50/50 interest rate" loan measure to help reduce the burden of production costs for farmers, especially fertilizer and seeds, amidst rising production input costs. She emphasized that this is a measure to address both short-term needs and long-term restructuring of the agricultural sector.
According to Thai News Agency, Deputy Prime Minister and Minister of Commerce, Ms. Supajee Suthamphan, stated that the "Half-Interest Loan" project is a measure to reduce farmers' operating costs, "plus" with skills development (upskilling/reskilling) to enable them to manage costs and use production inputs more efficiently. This is being done in collaboration with the Department of Agriculture, the Department of Land Development, and the Fertilizer and Seed Manufacturers Association. Furthermore, the project aims to promote the appropriate use of fertilizers and seeds for local conditions through knowledge sharing from relevant agencies, in order to increase productivity and reduce unnecessary use of production inputs. This will ultimately improve production efficiency in the long term.
Ms. Supajee stated that the measures implemented during this period are an integrated approach encompassing addressing the current situation, restructuring the production sector, and building future sustainability, particularly by reducing reliance on foreign production factors.
The "Half-Interest Loan" project, with a budget of 30 billion baht, has been approved by the Cabinet to help reduce farmers' operating costs, especially during periods of rising fertilizer and production input prices. The maximum loan amount is 100,000 baht per person, with a project duration of 3 years and a repayment period of no more than 12 months. The interest rate is set at 6% per year, with farmers bearing 3% and the government subsidizing the remaining 3%.
To participate in the program, farmers must have completed skills development in cost management, such as using fertilizer based on soil analysis, and must use loans to purchase production inputs through farmer institutions or designated sources, as well as use certified seeds according to government agency recommendations.
These measures are part of a comprehensive approach to agricultural care, encompassing short-term cost reduction, upgrading farmer skills, and restructuring production to strengthen and ensure the long-term sustainability of Thai agriculture. Beyond addressing agricultural costs, the government is extending its support to key raw materials in the industrial sector, particularly plastic pellets, which impact the prices of consumer goods.
Ms. Supajee further revealed that she had discussed with Mr. Varawut Silpa-archa, Minister of Industry, and experts in environmentally friendly packaging to find ways to promote the production of packaging from natural plant fibers and agricultural waste materials such as sugarcane bagasse, rice straw, and other biomass materials to replace the use of plastic.
This approach aims to reduce reliance on plastic resins, a primary raw material for many industries, including food packaging, pharmaceuticals, and consumer goods. It also helps mitigate the impact of fluctuations in global supply chains, particularly the situation in the Middle East that affects raw material costs.
The government is also moving forward with both short-term measures to regulate key raw materials to prevent shortages or price fluctuations, and long-term measures to promote environmentally friendly alternative materials. Simultaneously, this aims to enhance the potential of the Thai agricultural sector by adding value to agricultural waste through packaging, aligning with global market trends that prioritize sustainability and generating additional income for farmers in the long term.