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# Thailand launches subsidized loan scheme to ease fertilizer costs for farmers

Publication Date: 20.04.2026, 10:00

Government-backed program offers low-interest financing tied to efficiency and sustainable farming requirements.

Thailand’s government has approved a 30 billion baht (approximately $820 million) loan program aimed at reducing production costs for farmers by improving access to fertilizer and other key agricultural inputs. The scheme, to be implemented through the Bank for Agriculture and Agricultural Cooperatives (BAAC), will allow eligible farmers to borrow up to 100,000 baht (about $2,700) at a subsidized interest rate of 3%, down from the standard 6%.

Under the program, which runs through April 2029, borrowers must complete training in cost management and efficient farming practices provided by BAAC, the Ministry of Agriculture and Cooperatives, or partner institutions. Loan funds are restricted to the purchase of fertilizer, certified seeds, and approved planting materials through authorized channels. The initiative is part of broader efforts to cushion farmers from volatile fertilizer, energy, and transport costs, while encouraging a shift toward more precise and sustainable agricultural practices.

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