Thailand Approves 58.9 Billion Baht Rice Support Package as Separate Farmer Payments Await Review

Five Projects Target the October and November Harvest

Thailand's cabinet approved five rice support projects worth 58.91264 billion baht on October 20, 2026, aiming to ease pressure on paddy prices when large quantities of the 2026/27 harvest reach the market in October and November. The package combines loans for farmers and cooperatives, help with storage costs, incentives for private rice businesses and support for producing higher quality rice.

Deputy government spokesperson Lalida Periswiwatana announced the decision. The Commerce Ministry submitted the measures under the supervision of Deputy Prime Minister Suphajee Suthumpun, alongside a production strategy called the New Rice Economy.

The financing consists of 49.275 billion baht in credit and 9.63764 billion baht in government compensation and other expenditure. Credit gives participants money they must repay under the programme's terms, while compensation covers specified costs. The distinction matters for farmers deciding whether to borrow against stored rice or seek another form of assistance.

A separate proposal would pay rice farmers 1,000 baht per rai, up to 10,000 baht per household. That proposal has passed a production subcommittee and is heading to the National Rice Policy Committee. A plan to compensate farmers for half of a qualifying price shortfall is also being prepared.

Those household payments are at a different approval stage from the five projects cleared by the cabinet. Their next step is policy committee consideration, and no payment date has been announced. One project within the cabinet package also needs approval for its funding before operations can begin.

Loans Give Farmers Time Before Selling

The largest project allocates 40.92839 billion baht to loans intended to delay sales of paddy from the main rice crop, with a target of 3 million tonnes. Paddy is harvested rice with its outer husk still attached, before milling produces the rice sold for cooking.

Farmers often need money soon after harvesting, even when many neighbours are selling at the same time. The programme offers financing so participating farmers can keep rice in storage and sell later, when they judge the price suitable. The government will cover eligible interest costs and support storage and quality preservation under the programme's conditions.

The loan amount depends on the type of rice:

• Hom Mali jasmine rice: 13,000 baht per tonne.
• Hom Mali rice grown outside the designated area: 11,500 baht per tonne.
• Glutinous rice: 9,500 baht per tonne.
• Pathum Thani rice: 8,500 baht per tonne.
• Ordinary white rice: 6,500 baht per tonne.

For the same eligible weight, the financing available for Hom Mali rice is twice that for ordinary white rice: 13,000 baht compared with 6,500 baht per tonne. These figures determine how much credit a farmer can obtain against the crop, with repayment governed by the loan terms.

The Finance Ministry has considered reducing the compensation ceiling attached to this project to bring it into line with expected costs and the likely budget burden. That review concerns the government's spending on supporting the loans.

Cooperatives and Mills Get Help to Hold Rice

A second project provides 15.65625 billion baht for farmer institutions, including cooperatives and farmer groups, to collect rice and add value through processing or sale. Its target is 1.5 million tonnes.

Participating institutions will pay interest of 1% a year, with the government compensating a further 3.50 percentage points a year. This gives cooperatives access to financing at a lower cost while they gather crops from members, arrange sales or process the rice.

A third project allocates 564 million baht to compensate rice trading businesses, including mills and other private operators, for interest costs associated with holding stocks. It targets 4 million tonnes, the largest volume assigned to any single project in the package.

Farmers, cooperatives and private businesses therefore have different roles in the storage effort. Farmers can postpone their own sales, cooperatives can gather members' rice, and mills or traders can hold purchases in stock. Each channel aims to spread sales over time instead of concentrating them during the harvest rush.

Purchases Above Market Prices Need Funding Clearance

The fourth project sets aside 1.68 billion baht to absorb 3 million tonnes of paddy. It proposes purchases at prices above prevailing market levels, subject to the programme's conditions.

The Cabinet Secretariat recommended considering the Farmers Assistance Fund as the first source of money for this project. Operations can begin after approval from the fund's management committee. Farmers considering a sale through this channel therefore need the purchasing arrangements and funding clearance to be in place.

The package addresses both the timing of sales and the availability of buyers. Storage financing gives a seller more time, while the purchase project seeks to offer an outlet at a more attractive price during the period of heavy supply.

Lalida, the deputy government spokesperson, described the government's immediate aim:

The government aims to support farmers so they do not have to rush to sell rice when production reaches the market at the same time.

Her statement also connected the immediate price measures with expanded purchasing channels, rice processing and more stable farm income over the longer term.

Quality Rice Receives a Smaller, Targeted Allocation

The fifth project, the second phase of the quality rice programme known as Khao Praneet, has an allocation of 84 million baht. It plans to support 266 farmer groups with 300,000 baht each for production, processing and sales development.

The group grants total 79.8 million baht when multiplied by the stated number of recipients. The announced details leave 4.2 million baht of the project's 84 million baht allocation without a specified use.

This project works on a different part of the income problem. The storage and purchasing measures focus on when rice is sold and who buys it. The quality programme focuses on what farmers produce, how they process it and the markets they can reach.

The government's New Rice Economy approach brings those aims together: easing pressure during the harvest while supporting products that can earn more through quality and processing. At 84 million baht, the quality programme is much smaller than either of the two principal credit projects.

The Proposed 1,000 Baht Payment Has a Household Cap

The production subcommittee of the National Rice Policy Committee, chaired by Sorawut Nuengchamnong, has endorsed a separate scheme to help with farm management and improve rice quality. It would pay 1,000 baht per rai for a maximum of 10 rai per household. A rai is a Thai land measure equal to 1,600 square metres.

A household with five eligible rai would receive 5,000 baht under the proposed rate. A household with 10 eligible rai would receive 10,000 baht, the ceiling that would also apply to a household farming a larger eligible area.

The proposal is expected to reach about 4.69 million farming households, with an estimated budget of 40 billion baht. It is to go before the full National Rice Policy Committee, chaired by the prime minister.

The budget and household estimate suggest payments would vary with eligible area. Paying every one of the projected 4.69 million households the maximum 10,000 baht would cost 46.9 billion baht, or 6.9 billion baht more than the proposed budget.

The proposed management payment and the 58.91264 billion baht cabinet package have separate purposes and financing figures. Farmers following the announcements need to distinguish the household payment proposal from loans and support paid through cooperatives or private rice businesses.

A Second Proposal Would Cover Half a Price Gap

A further approach would compensate farmers for 50% of the gap when a qualifying market price falls below a reference price calculated using an average over the preceding seven days. Preparations envisage a reserve of between 20 billion and 40 billion baht, with payments through the Bank for Agriculture and Agricultural Cooperatives, or BAAC.

Under that formula, a qualifying gap of 1,000 baht per tonne would produce compensation of 500 baht per tonne, subject to the final rules. The payment would cover half the gap rather than raise the farmer's sale proceeds all the way to the reference price.

The reference price is central to how much assistance a farmer could receive. It provides the benchmark against which the relevant market price is compared. Final operating rules will be needed to determine eligibility and calculate individual payments.

The sequence of decisions helps explain which measures have progressed furthest:

• October 20, 2026: The cabinet approved the five projects for the 2026/27 rice season.
• October and November 2026: The package targets the period when large quantities of harvested paddy enter the market.
• After production subcommittee endorsement: The proposed payment of 1,000 baht per rai is to go to the full National Rice Policy Committee.
• Before the paddy purchase project begins: The Farmers Assistance Fund management committee must approve its funding.

Farmers Should Update Records and Protect Banking Details

Farmers preparing for the 2026/27 season are advised to update their registration between 15 and 60 days after planting. The stated channels are the Farmbook application, the agricultural registration service at efarmer.doae.go.th and district agricultural offices.

Registration records identify the farmer and crop information used in administering assistance. Farmers whose records have gone without updates for more than three consecutive years may lose eligibility, making it useful to check their status with the district agricultural office.

Farmers are also advised to ensure their BAAC account is active and to link PromptPay using their 13 digit national identification number. PromptPay connects an identifier, such as a national ID number, to a bank account so payments can be routed to the registered recipient.

The stated payment checking service, chongkho.inbaac.com, asks users to enter their national identification number. It can display the project name, account number, transfer date and payment status.

Farmer registration is free. Farmers should avoid links in suspicious text messages and keep one time passwords, known as OTPs, and banking details away from people contacting them unexpectedly. Typing the service address directly or checking with BAAC or a district agricultural office reduces the risk of entering personal details on an imitation page.

Key Points

• The cabinet approved five projects worth 58.91264 billion baht for the 2026/27 rice season on October 20, 2026.
• The package combines 49.275 billion baht in credit with 9.63764 billion baht in compensation and other expenditure.
• Loans, storage support and purchasing measures target pressure on paddy prices during October and November.
• The 1.68 billion baht paddy purchase project needs funding approval before operations begin.
• A separate proposal would pay 1,000 baht per rai, capped at 10,000 baht per household, subject to further consideration.
• A proposed price compensation mechanism would cover 50% of a qualifying shortfall against a reference price.
• Farmers should update registration, check banking details and avoid requests for registration fees or security codes.