To regulate cassava prices and prevent market oversupply during peak harvest periods, the government has implemented a program to delay cassava harvesting.
Key Takeways
- The government’s program postpones cassava harvests to stabilize prices, offering registered farmers loans up to 50,000 baht to delay harvesting by six months. With a 10.79 billion baht budget, it will benefit over 215,000 households. BAAC loans at 1% interest are available, with applications open until March 2025.
- Existing BAAC loan customers can apply for repayment extensions. Additionally, the Department of Internal Trade collaborates with animal feed factories to boost cassava demand, while the Department of Foreign Trade seeks new export markets and industrial uses. Further government measures allocate 368 million baht to enhance farmer support and processing efficiency.
- Support measures include interest compensation for stockpiling processors, value-adding loans for cooperatives, cassava chipping machines, and funding for improved cultivation through modern technology. These initiatives aim to stabilize the cassava market and offer long-term benefits to farming households and the agricultural industry.
To stabilize cassava prices and avoid market oversupply during peak harvesting, the government has introduced a cassava harvest postponement program.
This initiative encourages farmers to delay harvesting their cassava crops by providing financial incentives and storage solutions. By doing so, the program aims to balance supply and demand, ensuring fair prices for farmers while preventing market saturation. Additionally, the government plans to collaborate with agricultural cooperatives and private sector partners to streamline the implementation of this program and monitor its effectiveness.
The Bank for Agriculture and Agricultural Cooperatives (BAAC) is backing this initiative, offering financial support with loans up to 50,000 baht per household, allowing farmers to defer their harvests by up to six months. With a 10.79 billion baht budget, the program is set to assist over 215,000 farms. Participants receive loans at a 1% interest rate, with the government covering the rest, and repayments are due within six months but no later than September 30, 2025. Current BAAC clients with existing cassava production loans can also request repayment extensions. Applications are open nationwide at BAAC branches until March 31, 2025. Additionally, the Departments of Internal and Foreign Trade are working to increase cassava’s domestic and export demand. The Cabinet has sanctioned an extra 368 million baht for various support measures, including interest compensation and technological enhancements for improved cultivation.
