The Cabinet has approved the 2024 wet season rice insurance project, totaling 2,302.16 million baht.
Mr. Chai Wachirong, spokesman of the Prime Minister’s Office, revealed that the Cabinet meeting (July 16, 2024) resolved to approve the wet season rice insurance project for the 2024 production year as proposed by the Ministry of Agriculture and Cooperatives, as follows: 1. Approved the implementation of the wet season rice insurance project (the Project) for the 2024 production year in accordance with the resolution of the National Rice Policy and Administration Committee (NRAC) at the 2/2024 meeting on June 13, 2024, which has a target area of 21 million rai for basic insurance (Tier 1) and voluntary additional insurance (Tier 2), with a total project budget of 2,302.16 million baht, consisting of (1) a government subsidy of 1,612.16 million baht, consisting of a budget of 1,569.32 million baht for the government to subsidize Tier 1 insurance premiums and an advance payment by the Bank for Agriculture and Agricultural Cooperatives (BAAC) to subsidize insurance premiums on behalf of the government. And compensation from the government in the actual amount paid plus the cost of money, calculated at the compensation rate using the government’s financial cost rate at the financial cost rate of BAAC for the quarter plus 1 (currently equal to 2.73 percent), amounting to 42.84 million baht (2) The amount that BAAC subsidizes insurance premiums for BAAC loan customers in the amount of 690 million baht by the project for the production year 2024, summarized as follows: Beneficiaries In the case of farmers who are BAAC loan customers, the insured farmers are the beneficiaries of the full compensation. In the case of farmers who are BAAC loan customers who purchase more by themselves and general farmers (voluntary sector) – Insured farmers Insurance premium rates (excluding stamp duty and VAT) tier 1 (1) BAAC loan customers 115 baht per rai (2) General farmers – Low-risk areas (Pilot area) 70 baht per rai Medium-risk area 199 baht per rai High-risk area 218 baht per rai Tier 2 – Low-risk area 27 baht per rai Medium-risk area 60 baht per rai High-risk area 110 baht per rai Coverage (1) 7 natural disasters, tier 1 1,190 baht per rai and tier 2 240 baht per rai (2) Pests or epidemics, tier 1 595 baht per rai and tier 2 120 baht per rai Insurance premium subsidy rate (only tier 1) including stamp duty and VAT (1) BAAC loan customers 124.12 baht per rai Government subsidizes 78.12 baht per rai BAAC subsidizes 46 baht per rai (limited to 30 rai per person for farmers registered in the 2023-2024 production year and (2) General farmers – Low-risk area (Pilot area) 75.47 baht per rai, the government subsidizes 70.97 baht per rai, farmers pay 5 baht per rai – Medium-risk area 214 baht per rai, the government subsidizes 84 baht per rai, farmers pay 130 baht per rai – High-risk area 234.33 baht per rai, the government subsidizes 85.33 baht per rai, farmers pay 149 baht per rai BAAC starts selling insurance policies nationwide (63 provinces) from the date of the Cabinet resolution until July 31, 2024, except the South (14 provinces) which ends on December 31, 2024. The Ministry of Agriculture and Cooperatives has already prepared detailed information to support the request for approval in accordance with Section 27 and Section 28 of the Fiscal Discipline Act B.E. 2018.
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