Home Business Request for approval to implement the oil palm farmer income insurance scheme | RYT9

Request for approval to implement the oil palm farmer income insurance scheme | RYT9

by news dir

The Cabinet has a resolution approving as proposed by the Ministry of Commerce (P.O.) as follows:

1.Approved to operate the oil palm farmer income insurance project for the year 2021 by requesting an initial budget allocation of 4,613.04 million baht from the amount of 8,807.54 million baht as approved by the National Palm Oil Policy Committee (NACC). Already on August 19, 2020, in order to carry out the project for a while, the budget estimate required from the target price (4 baht per kg) minus the market price of palm bunches. (18% oil rate) average of the past 3 years (2018 – 2020) is the basis for calculation With details as follows

1.1 Compensation for income difference for oil palm farmers in the amount of 4,500 million baht to the Bank for Agriculture and Agricultural Cooperatives (BAAC) to reserve from funding sources.

1.2 Compensation of money costs at the rate of 2.20% (BAAC’s current 12-month fixed deposit rate of 1.20 + 1%), the amount of 99 million baht, and administrative expenses, including meeting expenses. public relations Establish a rights verification system and calculate remittances, guarantee income according to rights. Establish a system for transferring income insurance for farmers, processing fees, earning insurance transfers And other expenses at the rate of 7 baht per farmer Number of farmers (preliminary) 370,000, amount 2.59 million baht

In this regard, the BAAC shall submit the request for budget allocation for the fiscal year 2022 and the following years as necessary and appropriate in accordance with the next steps. For the government to repay the principal and actual expenses from the implementation of all projects within a period of 4 years, 1,200 million baht per year, except for the 4th year, pay the rest.

1.3 Management fees for income insurance projects of relevant government agencies, namely the Department of Agricultural Extension and the Department of Internal Trade, in the amount of 1.45 million baht and the amount of 10 million baht, respectively, requesting adjustments to the operating plan and budget spending plan for the fiscal year 2021. For the expenses of implementing the actual income insurance program

If there is a need to spend more than the approved budget, the P.O. will propose to the Cabinet for approval of the remaining budget.

2. Assign P.O. Ministry of Agriculture and Cooperatives (Kasetsart.), BAAC, Ministry of Interior (SUT) together with the Ministry of Finance (Khor. objective Project goals And will of the government in the future

The essence of the story

Police reported that

1. The Farmers’ Income Insurance Scheme aims to provide income assistance to oil palm farmers across the country who are faced with an oversupply and depressing price. In the past, there has been an income insurance program for oil palm farmers in the year 2019 – 2020, from October 1, 2019 to the present, BAAC has paid an income insurance to farmers for 378,892 households in the amount of 7,221.21 million. Baht accounted for 55.55 percent of the amount of compensation for farmers’ income difference of 13,000 million baht (ending the payment period to farmers on December 30, 2020), indicating that at present, the price of oil palm has started to adjust. On the better basis, however, oil palm is a crop that yields the whole year. In addition, Thailand still needs to be vigilant from the unresolved coronavirus outbreak. As a result, the palm oil and palm oil trade has not yet adjusted to normal, so it is necessary to continue the year 2021 oil palm farmer income insurance program.

2. At the MPC meeting No. 2/2020 on August 19, 2020, with Deputy Prime Minister (General Prawit Wongsuwan) as the chairman of the meeting, resolved to approve the implementation of the annual oil palm farmers’ income insurance scheme. By maintaining the same principles as the oil palm farmers’ income insurance scheme 2019 – 2020, the key points can be summarized as follows:

1. Objectives

  • Provide income assistance for oil palm farmers.
  • Alleviating the suffering of oil palm farmers from oversupply and depressing prices.

2. Goal

Oil palm growers who have registered farmers with the Department of Agricultural Extension in every household. By providing assistance to each household not exceeding 25 rai and must be an area for planting palm trees that have already yielded (3 years of age and over)

3. Criteria for assistance

  • Set target prices from the sale of palm bunches (18% oil rate) 4 baht per kilogram
  • The state pays farmers directly to compensate the difference between the target price and the reference market price.
  • Average yield per rai per year used to calculate the amount of assistance that farmers will receive Using the average yield data for the past 3 years (September 2017 to August 2020), equivalent to 2,948 kilograms per rai per year.

4. Payment of income insurance

  • BAAC paid compensation for the difference between the target price and the reference market price to farmers. The payment is made into the farmer’s account every 30 days or within the time frame set by the Sub-Committee of the Farmers’ Income Insurance Project, Oil Palm Farmers. (With the Director-General of the Department of Internal Trade as the president And has the Director of Agricultural Promotion Division 1, Department of Internal Trade As a secretary)

5. Budget and budget source (Unit: million baht)

(1) Farmers income compensation compensation limit / 8,600.00

(2) Management limits of BAAC

(2.1) Compensation of the cost of funds at the rate of 2.251 percent of the compensation limit / 193.50

(2.2) BAAC’s management fee (rate 7 baht per farmer, estimated for 370,000 farmers participating in the preliminary project) / 2.59

(3) Budget for management of government’s income insurance project

(3.1) Department of Agricultural Extension / 1.45

(3.2) Department of Internal Trade / 10.00

Total / 8,807.54

  • Financial assistance paid to oil palm farmers and operating expenses of BAAC, for BAAC to reserve money from BAAC funding source and request for budget allocation Annual expenditures for the fiscal year 2022 and the following years as necessary and appropriate according to the next steps. In order for the government to repay the principal and actual expenses from the implementation of all projects within a period of 4 years, 2,200 million baht per year, except for the fourth year, pay the rest.
  • Government project management fees are the Department of Agricultural Extension and the Department of Internal Trade. Request to adjust the operating plan and the budget expenditure plan for the fiscal year 2021 to be the expenses of the actual project implementation.

6. Processing time

  • Processing period: January – September 2021
  • Project period: Beginning from January 2021 with a period of time until BAAC receives the compensation budget as advocated.

7 Operating agencies

  • Main units: Ph.D., BAAC and TAT.
  • Supporting agencies: OCSC and related agencies

3. Department of Internal Trade Have a meeting with relevant departments, including the FDA, the Comptroller General’s Department, the Fiscal Policy Office And the Office of Agricultural Economics on December 14, 2020, in which all parties agreed that the Department of Public Affairs requested a new budget allocation for the implementation of the 2021 project in the amount of 8,807.54 million baht as approved by the MPC instead of using The remaining limits of the project in 2019 – 2020, together with the current situation of oil palm prices moving at a high level. Because the output to the market decreased according to the seasonal factors The Office of Agricultural Economics predicts that more production will be released in the second quarter of 2021, which may result in farmers suffering from weak product prices during that period. Therefore, this time, Ph.D. Budget for compensation for the initial income difference for farmers in the amount of 4,500 million baht (from the amount of 8,807.54 million baht) and compensation for the cost of the BAAC at the rate of 2.20 percent of 99 million baht (from the original 2.25 percent ) By requiring the BAAC to submit a budget allocation for the government to repay the principal and expenses incurred from the implementation of all projects within a period of 4 years, 1,200 million baht per year, except for the fourth year to pay the rest all To comply with the current situation

[1] Compensation of money costs at the rate of 2.25% (BAAC’s 12-month fixed deposit rate of 1.25 + 1%) is the rate as of August 2020 proposed by the MWA. No. 2/2020 on August 19, 2020

Source: General Prayut Chan-o-cha (Prime Minister) Cabinet Meeting on February 9, 2021


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