Agriculture minister vows to expedite debt relief for farmers

Ekaphap Phonsue, spokesperson for the Ministry of Agriculture and Cooperatives, revealed that Saikrai Pimbueng, a committee member and secretary of the Farmers’ Rehabilitation and Development Fund (FRDF), recently met with Narumon Pinyosinwat, the Minister of Agriculture. The meeting aimed to discuss policies and actions concerning Thai farmers’ issues.

Saikrai detailed that since 2019, the previous government had considered restructuring farmers’ debts. However, despite six years passing, no farmers have yet benefited from this debt restructuring.

Narumon inquired about the obstacles in resolving farmers’ debts through the FRDF and noted the current situation where farmers are protesting outside the Office of Agricultural Land Reform (ALRO).

She expressed her concern over these images and suggested that farmers send representatives to the ministry for discussions or arrange meetings directly in farmers’ areas. Narumon emphasised her willingness to meet and listen to the farmers’ grievances wherever necessary.

“The Minister of Agriculture stated in the meeting that she would bring the farmers’ distress to the prime minister to expedite the debt issue. She expressed sympathy and concern for the protesting farmers, especially considering the hardships they face, including rain and challenging living conditions.

“We need to find a way for distressed farmers to receive government assistance without resorting to protests and overnight stays. The fund’s management proposed establishing a subcommittee with representatives from each organisation and sector to understand and address the issues collectively.”

Ekaphap mentioned that during the meeting, Saikrai reported the challenges faced by FRDF member farmers due to debts with four state banks, including the Bank for Agriculture and Agricultural Cooperatives (BAAC), Government Housing Bank (GHB), and Government Savings Bank (GSB).

In 2019, under the previous administration led by Chalermchai Sri-on, a resolution was passed to restructure debts, with the FRDF designated to purchase these debts from the lending banks. However, the debt restructuring could not proceed because many loans did not meet the conditions for agricultural loans, preventing the FRDF from intervening to reduce interest rates and debts.

Government assistance

The FRDF submitted a list of farmers requesting government assistance according to the Cabinet resolution. Currently, approximately 16,000 farmers have been screened and approved for assistance out of an initial 50,000 applicants.

Regarding debt management tasks, the FRDF has registered 555,000 farmers with 889,000 contracts amounting to 137 million baht. The fund seeks government assistance to restructure these debts. Between 2006 and 2024, the FRDF managed debt payments for 35,343 farmers, covering 35,818 contracts with a debt value of 11,097 million baht.

This includes non-performing loans (NPL) valued at 10,481 million baht for 34,555 farmers, agricultural institutions’ debts totalling 7,032 million baht for 26,682 farmers, and commercial banks and legal entities’ debts of 3,449 million baht for 7,873 farmers. Additionally, NPLs valued at 615 million baht encompass 810 contracts.

Efforts have also been made to secure farmland for farmers, covering 28,635 plots amounting to 192,511 rai (approximately 308 million square metres), 2 ngan (800 square metres), and 71.2 square wah (284.8 square metres).

The government’s assistance and the FRDF’s initiatives are crucial in addressing the financial burdens that have long plagued the agricultural sector, ensuring sustainable livelihoods for farmers across the country, reported KhaoSod.