December 2, 2009
The Government of Japan, under its Grant Assistance for Grassroots Human Security Projects Scheme (GGP), has provided funds amounting to 2,936,100 baht for a project entitled “Micro credit for Organic Rice Farmers in Ubon Ratchatani and Amnart Charoen Provinces.” On November 13, 2009, H.E. Mr. Kyoji Komachi, Ambassador of Japan, Mr. Chatri Diraksi, Vice Governor of Ubon Ratchatani Province, Mr. Apilas Osatananda, Chairman of the Thai German Development Foundation and Mr. Montri Gosalawat, Secretary General of the Progressive Farmers Association, were present at the donation ceremony at an organic farm in Ubon Ratchatani Province.
The northeastern part of Thailand is a great rice producing area, providing 40% of all rice and 80% of Jasmine rice in the country. However, the number of farmers is decreasing because of harsh working conditions and low income. The climate in this area is not ideal for agriculture due to alternate droughts and floods. Therefore, the farmers go to the cities to look for work and borrow money at high interest rates, leaving them in debt for most or all of their lives.
In order to ease this situation, the Thai German Development Foundation carries out micro credit activities for 174 farmers in Ubon Ratchatani and Amnart Charoen Provinces. This plan gives each farmer 15,000 baht to purchase cattle or water buffalo for farming and to produce manure. It is expected to reduce costs for fertilizer and personnel expenses. Moreover, it will further expand its support to 276 farmers by 2011.
In response to a request from the Thai German Development Foundation, the Government of Japan provided funds for this micro credit project. Borrowers have to repay within 3 years at 6 percent interest, which is more favorable than terms offered by loan companies. It is expected that this support will be useful in improving the livelihood of farmers and in developing community life.
The Japanese government intends to continue supporting projects that can improve the livelihood of farmers.
