Fertiliser fiasco: Thailand halts farmers’ subsidy scheme

Trouble is brewing for Thailand’s farmers as the much-anticipated fertiliser subsidy faces suspension until next year, according to Agriculture Minister Thamanat Prompow.

Thamanat announced plans to discuss the troubled fertiliser subsidy policy with economic ministers, following revelations that the scheme could be on hold until 2024. Initially, the government had approved subsidies of 500 baht per rai, capped at 10,000 baht, for over 4.5 million farmers, starting yesterday, July 15. This co-payment programme was set to cost around 30 billion baht, offering significant savings compared to the previous administration’s rice farming subsidies.

However, budget constraints and objections from various parties have thrown a spanner in the works. Thamanat admitted yesterday that resolving misunderstandings regarding the subsidy would take time, cautioning that the policy might not see the light of day this year.

“The policy aims to reduce farmers’ expenses and promote precision farming to boost rice productivity.”

Thamanat noted that discussions within the Agriculture Ministry and with economic ministers would be crucial in determining the policy’s future.

“Political issues are another factor that triggered the suspension of the fertiliser subsidy policy, as some parties have to lose benefits. However, we want them to understand and focus on farmers’ benefits.”

If negotiations and further studies drag on, the subsidy could be postponed until next year. Despite the setback, Thamanat remains focused on reclaiming Thailand’s position as the world’s second-largest rice exporter from Vietnam by enhancing the aroma and taste of Thai rice. The ministry now boasts over 30 rice species suitable for cultivation across the country.

In 2023, Thailand ranked third among rice exporters with a volume of 5.27 million tonnes, trailing behind India and Vietnam. Natthakit Khongthip, Director-General of the Rice Department, confirmed the postponement of the fertiliser subsidy, citing differing views among farmers and financial constraints.

Natthakit expects the policy to launch in January or February next year, reassuring that the delay would not impact fertiliser manufacturers already participating in the programme, reported The Nation.