Government to give cash handouts to oil palm planters

The National Oil Palm Committee, led by Deputy PM Prawit Wongsuwan, plans to give away 1,500 baht per rai cash handout to 150,000 oil palm planters in a massive subsidy for their production cost.

The subsidies arrive with almost perfect timing for the ruling NCPO in the lead up to the national election in February and the rise of the proxy parties that have been formed in support of the current junta government.

Thai PBS reports that the cash giveaway is for planters who have cultivated oil palm trees for more than three years and each is entitled to claim the handout for up to 15 rai, or a maximum of 22,500 baht for each individual planter.

Other conditions apply…

1)  The planters must be Thais

2) Are heads of families and have registered with the Agricultural Promotion Department before December

3) Have bank accounts with the Bank of Agriculture and Agricultural Cooperatives

4) They must have proper legal land documents.

The one-time giveaway will cost 3,458 million baht in taxpayers’ money. The policy will soon be submitted to the cabinet for approval.

Energy Minister Siri Chirapongpant says that the cabinet had recently instructions the Energy Ministry, through the Electricity Generating Authority of Thailand (EGAT), to purchase 160,000 tonnes of crude palm oil at 18 baht/kg for use as fuel in power generation at the Bangkapong power plant.

EGAT will start buying crude palm oil in December, up to the full amount of 160,000 tonnes for use in power generation for 5-6 months.

The energy minister was optimistic that his measure would help push the price of fresh oil palm to 3.2 baht per kilogram which would help ease the financial suffering of oil palm planters who have been complaining of falling oil palm prices.

Last week, the cabinet approved 18.6 billion baht in aid package to help rubber plants and rubber tappers. Rubber planters are also suffering from a sharp price plunge.

Thailand’s Deputy PM Prawit Wongsuwan