BAAC Support THB 6 Billion Soft Loan Improve Cane Production.
5-7-2019 — Yesterday at the Office of Cane and Sugar, BAAC (Bank of Agriculture and Cooperative) signed MOU with 57 Sugar plants and Office of Sugar and Cane in The 6 Billion Baht Soft loan project to support Sugar Cane Production full circuit improvement during three years during the year 2019-2021 with 2% per year interest rate which now available for all groups of Thai sugar cane farmer.
Mrs. Worawan ChitArun, Secretary-General of The Cane and Sugar Board, said that this memorandum is a cooperation of three(3) parties according to the Cabinet resolution on June 11, 2019, which approves the expansion of the loan promotion project to increase the efficiency of sugarcane production in 2019 – 2021 by charging interest to individual farmers or farmers groups at the rate of 2 percent per year to support credit for farmers, farmers groups, agricultural cooperatives Sugarcane Planter Institute People and community enterprises Loan amount of 2,000 million baht per year, 3-year period, totaling 6,000 million baht from BAAC. The sugar factory is the guarantor while the government will help to compensate the excess interest lower than normal loan rate.
The loan will be available for sugarcane farmers to buy agricultural machinery, adjust the sugarcane planting area and develop water sources and water management in sugarcane fields according to the guidelines for promoting modern agriculture, using machinery and is one of the measures to solve the problem of sugarcane burning out within the year 2022.
The Office of Sugar and Cane will monitor, supervise and coordinate operations according to the guidelines set by the Cane and Sugar Board.
Such actions Is an opportunity for sugarcane farmers accessible to low interest funding sources to buy sugarcane cutter, sugar cane truck, sugarcane ripper, sugarcane harvester, sugarcane leaf press machine and to develop water sources in sugarcane farms Including machinery and other tractor accessories used in the planting including its maintenance.
Such the soft loan support is one way to help increase productivity, production and quality of sugarcane, reduce labor shortages, help reduce long-term production cost.Resulting in more income for sugarcane farmers to help improve sugarcane growers’ life quality.
The project will enhance competitiveness if the sugar and sugar cane industry in Thailand to be able to compete sustainably both in the ASEAN market and the world market.
