Farmers cultivating rice set to receive financial assistance amounting to B40 billion
Thailand Approves 40 Billion Baht Rice Support Budget for 2025
The National Rice Policy and Management Committee has approved a budget of 40 billion baht to support rice farmers in the 2025 off-season rice crop and the 2025/2026 main crop. This significant allocation is drawn from the government's 2026 fiscal budget.
More than 7 billion baht will be allocated specifically for the 2025 off-season rice paddies, while over 37 billion baht is earmarked for the 2025/2026 main crop. The support will be provided at a fixed rate of 1,000 baht per rai, with a cap of 10 rai per household, and is expected to assist approximately 4.6 million rice farmer households.
The global economic slowdown in the previous year has put pressure on Thailand's economy, and increased rice exports from countries like India have contributed to downward pressure on rice prices internationally. In response, the government is working to adjust rice varieties to match market demand and is encouraging farmers to switch to higher-yield rice varieties.
The support is intended to cushion farmers during periods when rice prices fall, while the government plans a gradual reduction of price support over the next decade. This aid seeks to assist farmers amidst global economic pressures, with the ultimate goal of reducing the need for government support in the future.
The Deputy Prime Minister and Finance Minister, Pichai Chunhavajira, made these announcements after a meeting on the committee yesterday. It is worth noting that in 2023, the committee decided not to financially support rice prices.
The government is also working towards reducing rice cultivation areas gradually and phasing out rice price support over the next 10 years. Other related agricultural support budgets, like a 4.5 billion baht allocation for wet- and dry-season rice farmer assistance in the 68/69 fiscal year, appear to be separate from this 40 billion baht package.
Adjustments in rice production cannot happen quickly, and the government recognizes that support may still be necessary in years when rice prices fall. This budget is a step towards ensuring the resilience of Thailand's rice farmers in the face of global economic challenges.
[1] Source: National Rice Policy and Management Committee [2] Source: Thai Rural Bank Public Company Limited
The government's decision to allocate 40 billion baht for rice support in 2025 is not only related to rice farming but also a part of the larger business sector, given it is drawn from the 2026 fiscal budget of Thailand. In the face of global economic pressures, this finance support aims to cushion rice farmers during periods when rice prices fall, with the ultimate goal of reducing the need for government support in the future.
