The Bank for Agriculture and Agricultural Cooperatives (BAAC) and Chia Tai Co, one of the country's most innovative agricultural companies, signed a memorandum of understanding (MoU) on Tuesday to foster cooperation to help farmers produce high-value products through the use of innovation.
The three-year MoU took effect on Tuesday and continues through March 31, 2025.
BAAC president Tanaratt Ngamvalairatt said the MoU involves support through the provision of low interest loans, advanced technology and solid production management plans to help farmers to upgrade their production.
All these components would add value to farm products and bolster their competitiveness in export markets, he said.
Mr Tanaratt added that around 102 community enterprises will join the MoU project during the pilot phase.
The bank is to provide the project with loans valued at 60 billion baht in total with an interest rate of 4% per year, he said.
Indeed, the bank launched this three-year loan project to support smart farming last year. So far, loans totalling 6-7 billion baht have been granted to farmers.
The bank is ready to add additional cash to the loan component to enable farmers to shift from traditional production modes to technology-based modes, said Mr Tanaratt.
However, the bank will not force farmers to take out loans. Rather, farmers would first need to identify their problems, he said.
He added that the country's farmers have been suffering due to high production costs and high market competition.
Manas Chiaravanond, chief executive of Chia Tai, said his company, as a solutions provider, would offer solutions to farmers, including knowledge in the areas of farming, investment and post harvest management.
It would also share knowledge in terms of the planting of high value produce, such as melons, to the farmers.
It would also make innovations available to the project, such as drones and smart green houses, to enhance the precision and quality in terms of production capacity, he added.
